The Securities and Exchange Commission (SEC) has raised concerns on the recent surge in applications for spot bitcoin exchange-traded funds (ETFs), indicating that filings lack clarity and complete information, according to a Wall Street Journal report.
Various companies submitted the nominations such as BlackRock and Fidelity Investments.
Following BlackRock’s lead, a wave of traditional and crypto asset managers, including Fidelity Investments, Ark Investment Management, Invesco, WisdomTree, Bitwise Asset Management, and Valkyrie, have reactivated or modified their applications for spot bitcoin ETFs in recent years. days. Approval of such an ETF would mark a milestone for the industry, providing broader institutional access to bitcoin and allowing investors to trade bitcoin as easily as stocks, albeit at the cost of losing some properties. bitcoin.
Experts predicted that BlackRock’s bid would address SEC concerns through an agreement to share oversight of a cash bitcoin trading platform with Nasdaq, the proposed listing exchange. ‘AND F.
Nonetheless, the SEC informed the exchanges that the filings lacked key details, such as the specific oversight sharing agreement that would be implemented. A Cboe spokesperson told the Wall Street Journal that they plan to update and refile the app.
The criticism from the SEC has once again highlighted the regulatory challenges surrounding the launch of spot bitcoin ETFs. Market participants are awaiting updates from asset managers and exchanges to address concerns raised by the SEC. As the industry eagerly awaits the potential approval of a spot bitcoin ETF, stakeholders are hopeful that the revised documents will provide the clarity and comprehensive information needed to gain regulatory acceptance.