There may be a longer wait for a spot Bitcoin ETF.
It appears that the Securities and Exchange Commission (SEC) isn’t granting any spot Bitcoin ETF application anytime soon.
A new report has revealed that the regulator doesn’t think that the recent slew of applications are clear and comprehensive enough
SEC may turn down applications
A Friday report from The Wall Street Journal has revealed that the SEC told Nasdaq and the Chicago Board Options Exchange (Cboe) that their filings for a Bitcoin spot ETF are not “sufficiently clear and comprehensive.”
The WSJ report noted that the securities regulator doesn’t think that the applicants were specific enough about how they will manage a “surveillance-sharing agreement.” This agreement is meant to prevent fraud and manipulation by ensuring the fund issuer is monitoring market trading activity, clearing activity, and KYC (customer identity).
The SEC has maintained that it won’t grant a Bitcoin spot ETF application until the applicant can sufficiently display that it can deter fraud and manipulation. The surveillance agreement featured in BlackRock’s application earlier this month. But it seems that the agency isn’t convinced.
The Gary Gensler-led commission had stressed on the inability to “prevent fraud and manipulative acts” as the reason why it denied Fidelity Wise Origin Bitcoin Trust application last year.
The applications can be resubmitted, and Cboe has said that they shall be refiling and updating their application.
Meanwhile, the Volatility Shares 2x Bitcoin Strategy ETF (BITX) debuted to investors on the Chicago Board Options (Cboe) BZX Exchange on Tuesday after receiving approval from the SEC last week as the first leveraged Bitcoin futures ETF. Also, the Bitcoin spot ETF is already on the market in Canada.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.