SEC criticizes applications to launch spot bitcoin ETFs

The bitcoin rate reacted to the regulator’s statement by falling

30.06.2023 - 15:30

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3 min

What’s new? On June 30, the US Securities and Exchange Commission (SEC) called the recent wave of applications from major investment firms to launch spot bitcoin exchange-traded funds (ETFs) “inadequate,” WSJ reports, citing its own sources. The bitcoin rate reacted to the news by falling from above $30 000 and is trading at $29 763 on Binance as of 13:50 UTC, down by 2,97% overnight.

The WSJ’s material

What else does the publication report? The SEC told representatives of the Nasdaq and Cboe exchanges, on whose behalf BlackRock, Fidelity, and others filed, that the documents were not “clear and comprehensive.” The regulator returned the documents because the firms did not provide sufficient information about surveillance sharing arrangements. However, the SEC added that the asset managers could update language and refile the filings.

That said, both BlackRock and Fidelity noted in their filings that joint surveillance could be implemented to avoid market manipulation. The crypto community thought that having this clause would be welcomed by the SEC and increase the chances of approval.

What is known about the applications? In June, major investment companies including BlackRock, Fidelity, Valkyrie, WisdomTree, Invesco, and Bitwise submitted applications to the SEC to launch a bitcoin ETF. Against this backdrop, crypto funds received a record volume of funds for the year between June 17 and June 23, and bitcoin rose above $30 000. On May 21, former Goldman Sachs CEO Raoul Pal called for buying BTC “right now,” citing a favorable macroeconomic situation.

Jeremy Allaire, CEO of USDC’s issuer, believes that applications will be approved because the necessary market infrastructure and effective oversight are in place. QCP Capital, on the other hand, does not expect a launch in the near term because of SEC chair Gary Gensler’s negative attitude toward cryptocurrencies.

Одобрят ли спотовый биткоин-ETF в США. Аргументы за и против

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Later, crypto lobbyists from the Blockchain Association urged Gensler not to get involved in the regulation of digital assets because he is biased and lacks competence in the matter.

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