SEC Comments Negatively on Spot Bitcoin ETF Registrations
The U.S. Securities and Exchange Commission (SEC) commented on the recent flurry of spot Bitcoin ETF registrations. As soon as the US regulator was reported to have made the remark, the price of Bitcoin plummeted.
Flurry of Applications
This comes after a flurry of applications from major asset management companies were received by the SEC only a week ago. Whether or if this is the beginning of a protracted legal and regulatory struggle for the licensing of Bitcoin ETFs on the spot is unclear.
Blackrock, the biggest asset manager in the world, has submitted an ETF application to the SEC. Then came requests for ETF applications from Valkyrie, Bitwise, Invesco, Fidelity, and WisdomTree.
The SEC officials reportedly consider the latest spot ETF applications unsatisfactory, according to sources quoted by the Wall Street Journal. SEC feels “recent filings from BlackRock, Fidelity, and others are not clear and comprehensive,” according to the article.
The SEC claims the asset managers hid the fact that they are working with a spot Bitcoin exchange in their agreement to share surveillance data. This may be more of a technicality than a serious impediment in the eyes of the SEC.
Will Firms Resubmit?
However, the crypto market might be placed in a precarious position. If the SEC authorities are not more forthcoming with details on the formal process to apply for the ETFs.
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Immediately after the regulator’s remarks, the values of crypto assets fell sharply, with Bitcoin plunging by almost 3 percent. According to the SEC, the ETF applications lack necessary clarity and completeness. Thus, prompting companies like Blackrock and Fidelity to resubmit their ETF filings.