Recent spot Bitcoin ETF applications fall short of SEC's expectations

CryptoSlate
CryptoSlate

30 Jun 2023 5:59 PM

On June 30, reports emerged that the U.S. Securities and Exchange Commission (SEC) has returned recent spot Bitcoin exchange-traded fund (ETF) applications. The applications, submitted by exchanges on behalf of BlackRock and Fidelity Investments, among others, were deemed not “sufficiently clear or comprehensive.” An anonymous source cited by the Wall Street Journal shared that the […]...

  • The U.S. Securities and Exchange Commission (SEC) has returned recent spot Bitcoin exchange-traded fund (ETF) applications submitted by exchanges on behalf of BlackRock and Fidelity Investments, among others.
  • The applications were deemed not "sufficiently clear or comprehensive" as they failed to identify the spot Bitcoin exchange that would enter into a surveillance sharing agreement (SSA) with Nasdaq and Cboe.
  • Nasdaq and Cboe expressed their intention to enter SSAs with the Chicago Mercantile Exchange (CME) instead of a spot crypto exchange.
  • The exchanges argue that the Bitcoin Futures market is the leading market for Bitcoin price formation and that participating in the Futures market would subject any actor trying to manipulate the price of Bitcoin to surveillance.
  • The exchanges also argue that ETFs tied to commodities like gold have entered the market despite the largely unregulated spot markets for these assets.
  • Cboe plans to refile the applications for the ETFs, potentially making changes to the SSA clause and specifying a spot crypto exchange.

The sentiment of the article is mostly neutral, with discussions around the SEC's concerns, the arguments made by the exchanges, and the potential changes to the applications.

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You May Ask

What is the reason behind the SEC returning recent spot Bitcoin ETF applications?Why did the applications fail to meet the SEC's requirements?What is the surveillance sharing agreement (SSA) and why is it important for the SEC?Why did Nasdaq and Cboe express their intention to enter SSAs with the Chicago Mercantile Exchange (CME) instead of a spot crypto exchange?How do the exchanges argue that the Bitcoin Futures market can prevent manipulation in the price of Bitcoin?

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