The SEC has reportedly found the recent wave of Bitcoin ETF applications to be lacking in detail, a surprise given the number of submissions, including one from leading asset manager BlackRock.
The SEC is reportedly disappointed with the Bitcoin ETF applicants’ plans for complying with the surveillance-sharing agreement. This is a key requirement for getting a Bitcoin ETF approved.
This Agreement mandates fund issuers to monitor customer identities, clearing activities, and trading activity to prevent market manipulation and fraud.
The SEC has reportedly raised concerns about the ability of all Bitcoin ETF applicants to comply with the surveillance-sharing agreement.
The value of Bitcoin surged when BlackRock said it will introduce a Bitcoin ETF, leading other large fund managers to consider doing the same.
Leading American asset management Fidelity applied for a Bitcoin ETF Wednesday, joining a growing group of companies that have done so in recent weeks.
The SEC’s reluctance to approve a spot Bitcoin ETF has kept the product off the market in the U.S., with the commission citing concerns about the potential for price manipulation.
A spot Bitcoin ETF would be very advantageous to investors since it would let them access Bitcoin without needing to be concerned about the safety of their money.
ETFs are traded on exchanges just like stocks and offer investors a convenient and easy way to invest in a basket of assets. ETFs may offer a more affordable method of gaining exposure to the cryptocurrency market than purchasing and maintaining individual coins.
Investors in the U.S. are dissatisfied with the SEC’s continuous rejection of spot Bitcoin ETFs, despite Canada having previously authorized three such products.