The SEC has rejected previous Bitcoin ETF proposals, allowing asset managers to resubmit a new, better proposal.
The Securities and Exchange Commission (SEC) has turned down recent requests for spot bitcoin exchange-traded funds (ETFs) from investment advisers as they need to improve.
According to The Wall Street Journal, the regulator informed Nasdaq and Cboe Global Markets that the reports made on behalf of asset managers like BlackRock and Fidelity Investments needed more consistency and comprehensiveness.
BlackRock has just submitted ETF paperwork to the SEC, which has caused a jump in the price of Bitcoin and other crypto-related equities, prompting the announcement.
In a first since April, Bitcoin’s price has surged beyond $30,000. This is a 20% increase. Over the same period, shares of Coinbase Global Inc, the company named as the custodian for the BlackRock fund’s assets, had increased by more than 30%.
Concerns about fraud and market manipulation have led the SEC to reject such funds repeatedly since 2017. Bitcoin futures are already being traded in a number of exchange-traded funds.
Investors and experts alike saw BlackRock’s proposal for a spot in Bitcoin ETF as the best chance of success due to the firm’s lengthy history of submitting applications that have been approved.
The submission by BlackRock was widely expected to allay SEC fears since it would create a “surveillance-sharing agreement” between the company and Nasdaq, the market where the ETF would be listed.
However, the SEC warned the exchanges that it returned the files because they needed more information regarding the mechanics of these monitoring arrangements and because they did not name the spot Bitcoin exchange with whom a surveillance-sharing agreement is anticipated. Investment firms may resubmit their applications with different terminology.
Also Read: Nasdaq And Cboe Get SEC Complaints For Spot Bitcoin ETF Filings
Wallets