The SEC believes that the most current filings from asset managers like BlackRock, ARK Invest, Fidelity, and others are not “sufficiently clear and comprehensive.”
The Securities and Exchange Commission (SEC) recently rejected investment managers’ applications for a spot Bitcoin exchange-traded fund (ETF), which could prolong the wait for a Bitcoin ETF in the US.
According to The Wall Street Journal, the SEC notified the Nasdaq and the Chicago Board Options Exchange (Cboe) that their filings were not properly thorough and transparent. In the filing procedure, these exchanges stand in for asset managers.
The SEC claims that the exchanges should have disclosed more specific information about these surveillance arrangements or specified the specific Bitcoin exchange they would collaborate with for a surveillance-sharing deal. However, the asset managers have the option to revise their filings after these issues have been resolved.
A number of businesses, including ARK Invest and 21Shares, have submitted or altered their applications for a spot BTC ETF in response to BlackRock’s entry into the race to launch the first spot Bitcoin ETF on Wall Street. In order to combat market manipulation, BlackRock’s application developed a surveillance-sharing agreement that shared information on market trading and clearing activities.
Related: Bitcoin ETF Approval Race Heats Up as ARK Invest Submits Surveillance Agreement
In recent days, several fund managers like Invesco, WisdomTree, Valkyrie, and Fidelity have all revised or resubmitted their applications. According to rumors, ARK Invest is seen as a front-runner in the fierce competition to introduce a Bitcoin ETF.
Exchange-traded funds (ETFs) are often traded on exchanges and follow particular indices. A cryptocurrency ETF is a fund made up of different cryptocurrencies that tracks the price of one or more digital tokens in the cryptocurrency market.
The SEC’s request for more thoroughness and clarity in the ETF applications shows the regulatory scrutiny and caution surrounding the launch of Bitcoin ETFs in the US.
The interest from well-known asset managers and the continued efforts to meet the regulatory requirements show that there is a growing need for regulated investment vehicles in the cryptocurrency market, even though the path to launching a spot Bitcoin ETF may encounter obstacles.