The future decision of the SEC regarding the approval of a spot Bitcoin ETF is uncertain. It is yet to be determined if the SEC will revise its stance on this matter.
One of the key factors contributing to the recent surge in Bitcoin’s value was the submission of applications by major asset management companies for spot Bitcoin ETFs. Notably, companies like Blackrock and Fidelity made such applications, leading to an approximate 20% increase in the price of Bitcoin.
The SEC has consistently held a disapproving stance towards spot Bitcoin ETFs, rejecting requests based on familiar reasons. However, when Blackrock, one of the world’s largest asset management companies, submitted its application, it prompted investors to question whether this time would be different.
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Currently, Coinbase’s role in the spot Bitcoin ETF applications is unclear and somewhat perplexing. In the past month, the SEC filed a lawsuit against Coinbase, alleging violations of securities laws. Interestingly, Blackrock is engaged in a partnership with Coinbase for cryptocurrency-related operations and has expressed intentions to collaborate further if the spot Bitcoin ETF receives approval.
According to lawyers who spoke to Reuters, the partnership between Coinbase and Blackrock in the context of the spot Bitcoin ETF filing could potentially hold hidden motives or risks, similar to the concept of a “Trojan horse.”
John Reed Stark, former chair of the SEC, commented on the matter and expressed his view on the Blackrock application.
He stated that collaborating with a company, like Coinbase, that is being sued by the SEC to safeguard investors is not something to be proud of. The SEC’s lawsuit against Coinbase primarily revolves around transparency concerns.
SEC Chairman Gary Gensler was asked in a recent session about the involvement of Coinbase in ETF filings and whether it would affect the filing process. However, Gensler did not provide a response to the question posed during the session.
Although legal experts don’t anticipate the SEC reversing its prior decisions, Eric Balchunas, Bloomberg’s senior ETF analyst, remains optimistic about the potential for Coinbase to play a role in altering the situation.
According to Eric Balchunas, Nasdaq and Blackrock were already aware of Coinbase’s regulatory challenges with the SEC. Balchunas proposes that the SEC might be utilizing the ETF applications as an opportunity to address these issues, while investment firms may be motivated to work with Coinbase to resolve these concerns and ultimately secure ETF approval.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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