The US Securities and Exchange Commission (SEC) has reportedly communicated to Nasdaq and Cboe that recent filings for spot Bitcoin ETFs are not up to par. This news comes as a surprise as industry giants like BlackRock and Fidelity, known for their asset management prowess, have submitted these filings.
SEC Casts Doubt on Bitcoin ETF Proposals
In recent weeks, the crypto industry has seen a wave of spot Bitcoin ETF applications, particularly from major traditional finance institutions, BlackRock and Fidelity. However, the smooth sailing for these asset management giants seems to be hitting turbulent waters.
According to The Wall Street Journal, the SEC considers these recent applications to be inadequate. This insight comes from individuals privy to the ongoing proceedings.
Nasdaq and Cboe Global Markets, who filed the ETF applications on behalf of BlackRock and Fidelity, have received feedback from the SEC, hinting at these inadequacies. People familiar with the matter have quoted the SEC’s response, noting the filings are not “sufficiently clear and comprehensive.”
A Flood of Bitcoin ETF Applications
The recent flurry of activity isn’t just limited to BlackRock and Fidelity. Several other firms such as Ark Investment Management, Invesco, and WisdomTree have jumped into the race, aiming to introduce their own Bitcoin ETFs.
The approval of an ETF tracking Bitcoin’s price would mark a significant milestone for the digital asset industry, paving the way for a broader spectrum of investors to enter the sector. Despite this, the SEC seems to be maintaining its track record of rejecting similar applications.
Since 2017, the SEC has consistently denied these proposals, usually citing the potential for market manipulation and fraud as their reasons. This latest news contradicts earlier predictions that gave BlackRock a 50% chance of receiving approval for its ETF application.
