The Securities and Exchange Commission (SEC) has raised concerns According to a report by the Wall Street Journal, a recent spike in applications for bitcoin exchange-traded funds (ETFs) is reported, citing that filings lack clarity and comprehensive information.
A variety of companies have submitted the applications, such as BlackRock and Fidelity Investments.
Following BlackRock’s lead, a wave of traditional asset managers and digital currencies, including Fidelity Investments, Ark Investment Management, Invesco, WisdomTree, Bitwise Asset Management and Valkyrie, have revitalized or modified their applications for bitcoin spot ETFs in recent days. The approval of this type of 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 with the loss of some of bitcoin’s characteristics.
Experts speculate that BlackRock will address SEC concerns through an agreement to share monitoring of the spot bitcoin trading platform with Nasdaq, the ETF’s proposed listing exchange.
However, the SEC told the exchanges that the filings lacked key details, such as the close-monitoring participation agreement that would be implemented. A Cboe spokesperson told the Wall Street Journal that they plan to update and rework the app.
The SEC criticism has once again highlighted the regulatory challenges surrounding the launch of Bitcoin spot ETFs. Market participants are awaiting updates from asset managers and exchanges to address concerns raised by the SEC. As the industry eagerly anticipates the potential approval of a spot Bitcoin ETF, stakeholders are hopeful that the revised filing will provide the clarity and comprehensive information needed to gain regulatory acceptance.