The US Securities and Exchange Commission (SEC) has reportedly found recent applications for Bitcoin exchange-traded funds (ETFs) that want privacy, despite filings from major players like BlackRock and Fidelity.
The US Securities and Exchange Commission (SEC) has reportedly deemed a recent stream of applications for bitcoin exchange-traded funds (ETFs) as deficient, according to the Wall Street Journal. condition.
Insiders report that the highest-profile regulatory body has declared that applications are not sufficiently detailed. This information comes as a surprise, given the number of Bitcoin ETF orders filed this month, with notable entries from leading asset manager BlackRock and others.
Sources indicate that the SEC is not convinced that Bitcoin ETF applicants have adequately defined their strategies for dealing with the Watch Share Agreement. This agreement, designed to prevent fraudulent practices and manipulation, requires issuers of funds to monitor market trading activity, clearing activity, and customer identity. According to the SEC, not all Bitcoin ETF applications to date have satisfactorily met this criterion.
BlackRock’s participation in the race caused a surge in the value of bitcoin, leading many other major fund managers to follow in their footsteps. Yesterday, the leading US firm Fidelity placed an order. Additional orders have been received from Invesco, Wisdom Tree, Valkyrie, and Bitwise.
The Bitcoin spot ETF still does not exist in the US due to the SEC’s continued reluctance to approve. The committee stresses that potential Bitcoin price manipulation is one of the primary drawbacks.
However, investors are eager for such a product, which would offer them a way to transact with bitcoin without dealing directly with the custody of the assets, according to industry experts.
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In its application filed yesterday, Fidelity suggests that its product will allow investors seeking exposure to the crypto sector to weather the risks associated with it. An ETF is an investment vehicle that shadows the value of an underlying asset such as gold, forex, or bitcoin.
Despite these concerns, the Securities and Exchange Commission (SEC) recently gave the go-ahead to an introductory futures forex fund: the 2x Volatility Stocks Bitcoin Strategy ETF (BITX), which became available to investors on the Chicago Board Options (CBOE) BZX Exchange last Tuesday. .