According to a report from the Wall Street Journal, the U.S. Securities and Exchange Commission (SEC) has expressed dissatisfaction with the recent influx of applications for spot Bitcoin exchange-traded funds (ETFs). The SEC has deemed these applications inadequate, highlighting their concerns regarding the proposed ETFs.
The SEC has reportedly stated that these applications lack clarity and specificity. This development is particularly noteworthy considering that even industry giants like BlackRock have filed applications for a Bitcoin ETF during this period.
The WSJ report cited that the SEC is particularly concerned about the applications’ failure to provide sufficient details regarding the implementation of a “surveillance-sharing agreement.”
This agreement is intended to safeguard fraud and manipulation by ensuring that the fund issuer monitors market trading activity, clearing activity, and customer identity. So far, the SEC has deemed all Bitcoin ETF applications to be inadequate in addressing this aspect.
The entry of BlackRock into the Bitcoin ETF race triggered a price surge, prompting other major fund managers to follow suit. Recently, Fidelity, a prominent U.S. firm, submitted its own application, joining the likes of Invesco, Wisdom Tree, Valkyrie, and Bitwise in their pursuit of similar ETFs.
It is important to note that a spot Bitcoin ETF is not yet available in the United States, primarily due to the SEC’s reluctance to approve such a product. The regulator has cited concerns over the potential manipulation of Bitcoin’s price as one of the key reasons for its hesitation.
However, industry experts assert that investors are eager for the introduction of a Bitcoin ETF as it would provide them with an opportunity to participate in the cryptocurrency without the need to directly handle custody of the asset.
Also Read: Circle’s Allaire Confident in Bitcoin ETF Approval
