The Securities and Exchange Commission (SEC) has
reportedly dismissed the recent applications by various asset managers to launch
spot Bitcoin (BTC) 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.
Specifically, the SEC
commented about the applications filed by Nasdaq and Cboe Global Markets on
behalf of asset managers BlackRock and Fidelity, the sources familiar with the matter told the
publication.
The number of asset
managers seeking approval to list spot Bitcoin ETFs increased
recently despite the fact that the regulator declined similar applications in the past. According to the
SEC, such funds are vulnerable to fraud and market manipulation.
The recent filings,
especially by the Wall Street giants, 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 channelled to existing ETFs, including the ProShares Bitcoin Strategy ETF (BITO).
Finance Magnates
reported that for the week that ended on June 25, BITO recorded the largest
amount of investments 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’ behaviour where
investments flowed from the Bitcoin cash market to the ETF market.
BlackRock Leads the Pack
The situation was triggered when BlackRock submitted an
application for a spot Bitcoin ETF on June 16. In the application, the
leading global asset manager noted that it will use the CME CF Bitcoin
Reference Rate to track the prices of Bitcoin. Several other asset managers
followed, submitting similar applications to the regulator.
In a separate report, Finance Magnates reported that Invesco and WisdomTree sought similar regulatory approval 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.
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 Exchange under the
symbol BTCW.
The Securities and Exchange Commission (SEC) has
reportedly dismissed the recent applications by various asset managers to launch
spot Bitcoin (BTC) 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.
Specifically, the SEC
commented about the applications filed by Nasdaq and Cboe Global Markets on
behalf of asset managers BlackRock and Fidelity, the sources familiar with the matter told the
publication.
The number of asset
managers seeking approval to list spot Bitcoin ETFs increased
recently despite the fact that the regulator declined similar applications in the past. According to the
SEC, such funds are vulnerable to fraud and market manipulation.
The recent filings,
especially by the Wall Street giants, 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 channelled to existing ETFs, including the ProShares Bitcoin Strategy ETF (BITO).
Finance Magnates
reported that for the week that ended on June 25, BITO recorded the largest
amount of investments 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’ behaviour where
investments flowed from the Bitcoin cash market to the ETF market.
BlackRock Leads the Pack
The situation was triggered when BlackRock submitted an
application for a spot Bitcoin ETF on June 16. In the application, the
leading global asset manager noted that it will use the CME CF Bitcoin
Reference Rate to track the prices of Bitcoin. Several other asset managers
followed, submitting similar applications to the regulator.
In a separate report, Finance Magnates reported that Invesco and WisdomTree sought similar regulatory approval 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.
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 Exchange under the
symbol BTCW.
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