The U.S. Securities and Exchange Commission (SEC) rejected an application from Ark 21Shares to create a spot exchange-traded bitcoin fund (ETF). The reason for the rejection was a lack of investor protection.
Ark Investment is managed by investor Kathy Wood.
The application was filed on behalf of the Cboe BZX exchange to change the rules and allow a listing from Ark 21Shares.
Ark Investment Management and 21Shares Investment Company teamed up to launch the product last July. The initial application from Ark 21Shares was delayed several times.
In early March, the SEC deferred decisions on similar applications from WisdomTree and One River Asset Management. Prior to that, the SEC rejected proposals from NYDIG, Global X, Fidelity, First Trust, Kryptoin and VanEck.