SEC rejects SkyBridge Bitcoin ETF application, says fraud and scrutiny cannot be stopped

The United States Securities and Exchange Commission (SEC) cleared First Trust Advisors and SkyBridge's Bitcoin ETF app for denial after several extensions. The SEC said ETFs could not meet fraud and misconduct prevention requirements.

Skybridge Capital expects its Bitcoin ETF application to be approved by the end of last year. However, the SEC refused to accept it due to concerns about reasonable pricing in the cryptocurrency market.

The SEC stressed in a lawsuit Thursday (20) that the proposed amendments to the ETF agreement would not prevent fraud and misconduct, nor protect investors and the public interest.

At the same time, according to the decision, US commodities, mostly high-tech commodities, suffered heavy losses, and the value of Bitcoin (BTC) also fell, falling to an all-time high around 38,200. dollars and below the $40,000 line. .

The SEC has extended two review sessions to determine whether the changes should be approved before the January 20 final decision.

The SEC also explained that the NYSE does not comply with its applicable trade laws and regulations for the registration of financial instruments with the Securities and Exchange Commission. Under these restrictions, exchanges that want to list Bitcoin ETFs must enter into hedging contracts with large regulated firms.