According to the SEC, the recent filings submitted by BlackRock, ARK Invest, Fidelity, and other asset managers are deemed insufficiently clear and comprehensive.
The launch of a spot Bitcoin exchange-traded fund (ETF) in the United States could face a longer delay, as the Securities and Exchange Commission (SEC) has declared the recent applications from investment managers as inadequate.
As reported by the Wall Street Journal, the Nasdaq and the Chicago Board Options Exchange (Cboe) have been informed by the securities regulator that their filings are not “sufficiently clear and comprehensive.” These exchanges act as representatives for asset managers in the filing of the financial product.
According to the SEC, the exchanges were expected to identify the specific spot Bitcoin exchange with which they would establish a “surveillance-sharing agreement” or provide adequate details about such surveillance arrangements. However, asset managers have the opportunity to resubmit their filings after providing clarified information.
Following BlackRock’s inclusion in the list of companies aiming to launch the first spot Bitcoin ETF on Wall Street, a wave of applications has been filed in recent weeks. BlackRock’s application notably introduced a “surveillance sharing agreement,” facilitating the exchange of information about market trading and clearing activities between entities to mitigate the risk of market manipulation.
Following BlackRock’s application, ARK Invest and 21Shares have revised their third application for a spot BTC ETF to incorporate a surveillance agreement similar to BlackRock’s. Several other asset managers, including Invesco, WisdomTree, Valkyrie, and Fidelity, have also either resubmitted or amended their applications in recent days. Among them, ARK Invest is reportedly considered a frontrunner in the race for approval.
ETFs, short for exchange-traded funds, are investment funds designed to track specific indices and are typically traded on exchanges. In the cryptocurrency market, a cryptocurrency ETF refers to a fund that mirrors the price movements of one or multiple digital tokens. These funds are composed of various cryptocurrencies.
While the SEC has consistently denied the approval of spot Bitcoin ETFs since 2017, Canada has already made significant progress in this area. In Canada, several notable funds, including Purpose Bitcoin, 3iQ Coinshares, and CI Galaxy Bitcoin, have successfully launched and directly invested in spot Bitcoin, offering investors exposure to the cryptocurrency.
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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