The US Securities and Exchange Commission has begun reviewing all instant Bitcoin ETF deposits resubmitted by all applicants along with a “watch share” clause.
The US Securities and Exchange Commission (SEC) has begun reviewing all spot Bitcoin ETF applications it has received over the past month, starting with BlackRock.
The regulator recently released documents for public consultation, but the formal review process will begin once filings are published in the Federal Register. The SEC is seeking comment on Cboe’s ETF applications, including those from Wise Origin, WisdomTree, VanEck, Invesco Galaxy, and ARK 21Shares. In addition, the SEC is also seeking comments on BackRock’s iShares Bitcoin Trust, which was filed on Nasdaq.
BlackRock’s request to formally file a Bitcoin ETF has been added to the SEC’s records for review. This is a significant step forward for the highly anticipated Bitcoin-related proposal.
BlackRock has sparked a new wave of optimism in the crypto market. It also led to some additional Bitcoin ETF deposits from other financial players in the market.
After the Securities and Exchange Commission expressed concerns about BlackRock’s initial application, the company filed a revised version that included a “sharing monitoring” clause. This provision would include monitoring the cryptocurrency exchange Coinbase and reporting any potential illegal activities. Following BlackRock’s lead, other companies like Valkyrie, Fidelity, and ARK Invest have also updated their apps to include a similar provision.
Why would the Spot Bitcoin ETF be a game changer?
A Bitcoin spot ETF is a type of investment that tracks the value of Bitcoin without having to own the actual cryptocurrency. It can be traded on the traditional stock exchange. Although a Bitcoin ETF based on Bitcoin futures already exists, a spot ETF tied to the current price of Bitcoin is highly sought after in the industry. However, the SEC had resisted approving such an institution in the past, which was seen as a major setback.
Now that BlackRock’s app is on the SEC’s official calendar, it will be published in the Federal Register. This post will initiate a 21-day period for the public to provide feedback on the app.
In an interview with CNBC last week, BlackRock CEO Larry Fink He said:
We believe we have a responsibility to democratize investment. We’ve done a great job, and the role of ETFs in the world is to transform investment. We are only at the beginning of that. We’re working with our regulators because, as in any new market, if the BlackRock name is going to be on it, we’re going to make sure it’s safe, sound and protected.”
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Bhushan is a financial technology enthusiast with a good knack for understanding financial markets. His interest in economics and finance has turned his attention towards the new emerging Blockchain technology and Cryptocurrency markets. He is persistent in the learning process and keeps himself motivated by sharing the knowledge gained. In his spare time he reads fantasy and thriller novels and occasionally explores his culinary skills.