SEC Dismisses Latest Spot Bitcoin ETF Applications as Inadequate

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The Securities and Exchange Commission (SEC) has
reportedly dismissed several applications by asset managers to launch
spot Bitcoin Exchange-Traded Funds (ETFs). According to sources who shared
information with the Wall Street Journal on Friday, the agency termed the
applications as neither sufficiently clear nor comprehensive.</p><p>Specifically, the SEC
commented about the applications filed by Nasdaq and Cboe Global Markets on
behalf of the asset managers, BlackRock and <a href="https://www.financemagnates.com/cryptocurrency/fidelity-officially-submits-its-spot-bitcoin-etf-application/" target="_blank" rel="follow">Fidelity</a>, the sources familiar with the matter told the
publication.</p><p>SEC Under Pressure</p><p>The number of asset
managers seeking approvals to list spot Bitcoin ETFs increased
recently since the regulator declined similar applications in the past. According to the
SEC, such funds are vulnerable to fraud and market manipulation.</p><p>The recent filings,
especially by the Wall Street giants, had renewed hopes among investors that
the SEC could soften its stance and approve the first spot Bitcoin ETF in the
US. Nonetheless, there has been a record amount of funds channeled to the
existing ETFs, including the ProShares <a href="https://www.financemagnates.com/terms/b/bitcoin/">Bitcoin</a> Strategy ETF (BITO).</p><p><a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a>
reported that for the week that ended on June 25, BITO recorded the <a href="https://www.financemagnates.com/cryptocurrency/crypto-etfs-attract-record-cash-amid-regulatory-crisis-in-the-us/" target="_blank" rel="follow">largest
amount of investments</a> worth
$65.3 million. Additionally, on Friday of the same week, the fund traded 500
million shares, something that has only happened five times since it was
launched. The data further showed a shift in investors’ behavior where
investments flowed from the Bitcoin cash market to the ETF market.</p><p>BlackRock Leads the Pack</p><p>The situation was triggered when BlackRock submitted an
application for a spot Bitcoin ETF on June 16. In the application, the
leading asset manager globally noted that it would use the CME CF Bitcoin
Reference Rate to track the prices of Bitcoin. Several other asset managers
followed, submitting similar applications to the regulator.</p><p>In a separate report by
Finance Magnates, Invesco and WisdomTree had <a href="https://www.financemagnates.com/cryptocurrency/invesco-and-wisdomtree-join-blackrock-in-pursuit-of-spot-bitcoin-etf-approval/" target="_blank" rel="follow">sought
regulatory approvals</a> to
launch their spot Bitcoin ETFs. Based in Atlanta, Georgia, Invesco is an asset
management company with Assets Under Management (AUM) worth $1.4 trillion. The
company initially attempted to launch a spot bitcoin ETF in 2021 in partnership
with Galaxy Digital but was unsuccessful.</p><p>On
the other hand, WisdomTree, one of the major ETF providers in the US with an
AUM of $83 billion, plans to list an ETF dubbed WisdomTree Bitcoin Trust. Given
the regulator's approval, the fund will list on Cboe BZX <a href="https://www.financemagnates.com/terms/e/exchange/">Exchange</a> under the
symbol BTCW.</p>

This article was written by Jared Kirui at www.financemagnates.com.