Asset manager ARK Invest and cryptocurrency ETP provider 21Shares have filed a new joint application to launch a first cryptocurrency-backed exchange-traded fund (ETF). Considers the most recent comments SEC.

The deadline for the evaluation of the application is expected to be decided or extended on 9 July.

The Commission has yet to approve any application to launch a spot bitcoin ETF, including ARK Invest and 21 Shares, which the partners submitted on May 20, 2021.

As with other similar proposals, the SEC later stated that the requirements were not complied with to prevent fraudulent or manipulative practices and protect investors.

The regulator also pointed out that there is not a sufficiently large market for the underlying asset. However, that hasn’t stopped the agency from allowing the launch of exchange-traded funds based on futures for the first cryptocurrency by VanEck, Valkyrie Investments, and ProShares.

Grayscale Investments admitted that the Commission violated the law in approving bitcoin futures ETFs and said it is ready to sue the department if it refuses to convert. GBTC in ETFs.

ARK Invest and 21 Shares also dispute the SEC’s latest argument. Applicants, although the futures product is traded, CM with joint control agreement [регуляторов]determined by the prices of the still unregulated bitcoin spot market.

“[…] and Change [Cboe BZX, где предполагается листинг ETF]and the Sponsor believes it […] The bitcoin futures market on the CME is a heavily regulated market as the CME refers to both the bitcoin futures market and the bitcoin spot market. Therefore, this proposal needs to be approved,” the message says.

Recall that in April, the SEC allowed the listing of futures bitcoin-ETF from Teucrium based on the Securities and Exchange Act of 1934.

Prior to that, Commission chairman Gary Gensler said that for possible approval of such instruments, their core assets should be CME bitcoin futures. He also talked about filing under the Investment Companies Act 1940.

Earlier, Bloomberg analyst Eric Balciunas acknowledged that the SEC’s agreement to change the swap model would remove barriers to the spot bitcoin ETF.