SEC Reportedly Finds Flaw in the Latest Slew of Spot Bitcoin ETF Applications
After Blackrock submitted its application for a spot bitcoin ETF, other companies quickly followed suit. However, the SEC has not yet granted approval to spot bitcoin ETFs, despite approving bitcoin futures ETFs. Insiders claim that the submitted applications do not meet the SEC’s standards.
Key Points:
- The SEC has reportedly deemed the submitted applications inadequate, according to the Wall Street Journal.
- The SEC has communicated this to Nasdaq and Cboe, the firms responsible for filing the registrations.
- Cboe plans to revise and resubmit the registration, while Nasdaq declined to comment.
- The filings lack clarity and comprehensiveness, according to sources.
- Various firms, including Blackrock and Bitwise, have already submitted their filings for spot bitcoin ETFs.
Furthermore, Grayscale Investments, the largest manager of digital currency assets, tried to convert the Grayscale Bitcoin Trust into a spot bitcoin ETF. However, the SEC rejected their application, leading Grayscale to take legal action. The SEC’s concerns revolve around market manipulation and investor protection.
Hot Take:
While there is growing interest in spot bitcoin ETFs, the SEC has found flaws in the latest batch of applications. This highlights the regulatory body’s concerns about market manipulation and investor protection. Companies will need to revise and resubmit their registrations to meet the SEC’s standards.
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