Despite the SEC’s rejection of their first applications, several asset managers remain optimistic about their spot Bitcoin ETFs will be accepted since they have resubmitted their applications with updated terms on surveillance-sharing arrangements.
According to a June 30 Wall Street Journal article, the SEC is likely to reject spot Bitcoin ETF applications from Fidelity, WisdomTree, VanEck, Invesco, and BlackRock because it is uncertain whether the agreements (SSAs) between the asset managers and the exchanges that would list the products are clear enough.
The SEC was worried that the applications did not name a specific spot Bitcoin exchange with which they would share surveillance data. SSAs (surveillance-sharing agreements) are a requirement for spot Bitcoin ETFs, and they help to prevent fraud and market manipulation.
The revised applications from Fidelity, WisdomTree, VanEck, and Invesco are a sign that the asset managers are serious about getting their spot Bitcoin ETF applications approved, and they are taking steps to address the SEC’s concerns. The future of spot Bitcoin ETFs in the US is still uncertain.
BlackRock’s spot Bitcoin ETF application is still pending with Nasdaq, but there is no indication that the asset manager has resubmitted or updated its filing. This could be a sign that BlackRock is still considering its options, or that it is waiting for the SEC to decide on the other applications.
While Fidelity, WisdomTree, VanEck, and Invesco have all submitted revised filings with Cboe.
The SEC has not said anything yet about the various pending ETF applications, so it is unclear whether they will be approved or not.
The SEC will have 45 days to review the applications once they are published in the Federal Register. This is the initial review period, and the SEC can extend it for up to 240 days.