SEC denied New York Digital Investment Group and Global X's request

New York Digital Investment Group and Global X filed with the SEC for spot Bitcoin exchange-traded funds in June and August 2021.

The United States Securities and Exchange Commission (SEC) rejected New York Digital Investment Group and Global X's application for a spot Bitcoin exchange-traded fund.

Listing and trading of spot Bitcoin exchange-traded fund (ETF) shares of Global X Bitcoin Trust and New York Digital Investment Group proposed by SEC, Cboe BZX Exchange and New York Stock Exchange (NYSE) Arca, which discussed two separate proposals on Thursday rejected the amendments to be made. The SEC stated that NYSE Arca and Cboe BZX do not meet the required qualifications under the Exchange Act and must be able to meet the clauses of the SEC's codes of practice that "must be designed to prevent the practice of fraudulent and manipulative action, and protect investors and the public interest."

New York Digital Investment Group (NYDIG) filed with the SEC for Bitcoin (BTC) ETFs in June 2021 and Global X in August 2021. However, the commission stated that a longer period was needed to vote on or reject the proposed amendment and brought the issue to public opinion several times before deciding on the applications. The SEC also announced the same rejections for VanEck and WisdomTree's spot Bitcoin ETF applications.

While the Commission has yet to approve any of the financial institutions' spot Bitcoin ETF applications, the same is not true for investment vehicles tied to Bitcoin futures. Many companies have applied for BTC futures ETFs, and Valkyrie, ProShares, and VanEck's BTC futures ETF after SEC chairman Gary Gensler announced in August 2021 that they were looking slightly more favorably at accepting crypto futures-traded funds on the exchange. approved their application.

Some companies choose to put pressure on the SEC to approve this decision change. After the SEC delayed its decision to approve or reject the spot Bitcoin ETF application, Grayscale's executive launched a campaign urging many investors to comment to the SEC. The Commission is expected to reach a decision by 6 July.

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