SEC Rejects Kryptoin Spot Bitcoin ETF Proposal

The U.S. Securities and Exchange Commission (SEC) rejected investment firm Kryptoin’s proposal for a spot bitcoin exchange-traded fund (ETF) Wednesday after evaluating it for over eight months.

The decision was much anticipated though SEC Chair Gary Gensler had made clear his preference for a bitcoin futures ETF to an ETF that holds bitcoin itself.

The SEC had rejected a similar application from VanEck five weeks ago.

Grayscale, which registered for a Bitcoin ETF in October, has not received a nod yet.

The company currently owns a bitcoin trust which has caught the attention of investors. The Grayscale Bitcoin Trust is one of the easiest ways for investors to have a slice of Bitcoin without actually holding it in their wallets. The investment firm officially submitted an application on Oct. 19 to the SEC to convert its fund into an ETF.

At the same time, the ProShares Bitcoin Strategy ETF BITO launched its bitcoin futures–linked offering and became the first bitcoin-pegged ETF to debut in U.S. markets. Since then, two other bitcoin-related exchange-traded funds have come up: Valkyrie Bitcoin Strategy ETF BTF, and VanEck Bitcoin Strategy ETF XBTF.

On Thursday morning, Bitcoin was trading lower, experiencing a 2.09% fall in the last 24 hours.