Inspenet, July 3, 2023.
The United States Securities and Exchange Commission (SEC) has said that applications for spot Bitcoin ETFs filed by major asset managers such as BlackRock and Fidelity are confusing and incomplete.
This news has caused an abrupt drop in its price, going from a daily maximum of $31,256.86 to a minimum of $29,600.28. However, the price has shown some signs of a gradual recovery, as it has managed to break above $30,000 again, according to the specialized site Invezz.
Latest Bitcoin ETF Requests
A Bitcoin futures ETF is an exchange-traded fund that allows investors to gain price exposure to Bitcoin without having to purchase it directly. These exchange-traded funds are regulated financial products that can represent a variety of different assets.
Major asset managers such as BlackRock , Fidelity , among others, had submitted applications to launch spot Bitcoin exchange-traded funds (ETFs) through Nasdaq and Cboe Global Markets.
Unfortunately, the SEC has rejected these requests on the grounds that they were insufficient and required further review. In recent years, the agency has rejected several Bitcoin ETF applications due to these shortcomings.
Likewise, the SEC has raised long-term concerns about possible fraud and market manipulation, which has resulted in a constant series of rejections. In fact, in January 2022, Fidelity’s application was rejected by the SEC, arguing that it did not meet established standards to discourage dishonest and manipulative practices.
In order to maintain a level playing field, strict compliance with regulations is intended to protect investors and the general public.
Other asset managers such as Ark Investment Management, Invesco, WisdomTree, Bitwise Asset Management and Valkyrie were also affected by the recent SEC assessment. According to a tweet from Eric Yakes, these $15 trillion Wall Street firms had filed applications for spot Bitcoin ETFs.
In response to ongoing criticism from the SEC, these organizations have updated or reactivated their spot cryptocurrency ETF applications.
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