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CBOE Seeks ARK 21Shares Bitcoin ETF Green Light Despite Regulatory Hurdles

2 mins
Updated by Kyle Baird
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In Brief

  • CBOE filed its ARK 21Shares spot Bitcoin ETF application with the SEC for the third time.
  • The SEC rejected the ETF on two previous occasions, most recently in January 2023.
  • It believes that all spot ETF proposals so far lack enough investor protection measures.
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The Chicago Board Options Exchange has applied for the ARK 21Shares Bitcoin ETF with the SEC for a third time. The agency has rejected the application twice before.

The Chicago Board Options Exchange (CBOE) has filed yet another proposal for its ARK21Share Bitcoin ETF with the United States Securities and Exchange Commission (SEC). The ETF is a spot one — none of its kind is yet to be approved by the SEC — and relates to the one offered by Ark Invest and investment firm 21.

SEC Still Hesitant on Spot Bitcoin ETFs

The SEC has been extremely hesitant to approve spot ETFs, and it may be some time before the market sees one approved. With the U.S. government becoming increasingly focused on regulating the crypto market, it appears there will be a lot of regulation before such investment products hit the market.

As for the CBOE, it has applied for approval for this ETF twice before, with the SEC rejecting it out of concern for investor protection. While this is the current environment in which entities operate, it does not seem to stop them from applying.

Ark 21Shares Spot Bitcoin ETF Rejected Twice Before

The SEC first rejected the ARK 21Shares spot bitcoin ETF in April 2022, citing concerns about the ability to prevent fraudulent and manipulative practices. The ETF, with the ticker ARKA, will not see Ark Investment provide investment decisions or advice, with the company only offering marketing support.

In the second rejection, which happened in January 2023, the SEC stated that the ETF did not “demonstrate that its proposal is consistent with the requirements.” With the second rejection, it’s clear that the SEC isn’t ready to approve a spot ETF unless there are major changes in the crypto market.

SEC Has Tossed Out Several Spot Bitcoin ETF Applications

The SEC’s previous rejections are a testament to the fact of the agency’s hard position on the crypto market. Grayscale and VanEck have also seen spot ETFs rejected, with the former even going forward with a lawsuit upon a rejection.

The SEC rejected WisdomTree’s spot Bitcoin ETF application on the same grounds of investor protection. Similarly, it also rejected an application from the New York Digital Investment Group and fund manager Global X.

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Rahul Nambiampurath
Rahul Nambiampurath's cryptocurrency journey first began in 2014 when he stumbled upon Satoshi's Bitcoin whitepaper. With a bachelor's degree in Commerce and an MBA in Finance from Sikkim Manipal University, he was among the few that first recognized the sheer untapped potential of decentralized technologies. Since then, he has helped DeFi platforms like Balancer and Sidus Heroes — a web3 metaverse — as well as CEXs like Bitso (Mexico's biggest) and Overbit to reach new heights with his...
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