SEC Says Spot Bitcoin ETF Filings Are Inadequate

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Among several high-profile submissions, the U.S. Securities and Exchange Commission (SEC) says recent Bitcoin spot ETF filings are inadequate. The statements come after asset management behemoths BlackRock and Fidelity recently filed for their own Bitcoin spot exchange-traded fund.

The Wall Street Journal reported that the SEC briefed Nasdaq and Cboe on their views on the recent filings. Specifically, the report noted the agencies’ statements that the documents were not clear and complete.

Also read: BlackRocks Bitcoin Spot ETF Masterplan for 2024

SEC speaks out on recent Spot Bitcoin ETF filings

Over the past few weeks, the digital asset industry has been surprised by a host of Bitcoin ETF spot applications that have arrived. Additionally, these nominations come from two of the biggest names in traditional finance. Both BlackRock and Fidelity are among the largest asset management companies on the planet and are looking to enter the industry.

Yet a recent report suggests that approval of these entities may not be guaranteed. Indeed, The Wall Street Journal reported that the SEC said recent Bitcoin spot ETF filings are inadequate, citing people with information on the ongoing proceedings.

Nasdaq and Cboe Global Markets filed the ETF applications on behalf of the asset managers. Therefore, people rated the SEC’s response as indicating their inadequacy. Specifically, by indicating that the filings are sufficiently clear and complete, according to the sources.Source Capital.com

Recent developments have not been limited to the two companies, as a host of Bitcoin ETF applications have arrived. Companies like Ark Investment Management, Invesco, WisdomTree and others have entered the competition.

The move would mark an important moment for the digital asset industry. Setting up an ETF that tracks the price of Bitcoins would only create a greater opportunity for investors to enter the sector. Still, it appears the SEC continues its penchant for denying similar claims.

Also Read: BlackRock Could Get SEC Approval for Bitcoin ETF with New Deal Included

Since 2017, the SEC has repeatedly denied similar requests. Typically, the regulator emphasizes the potential for market manipulation and fraud in its reasoning. Moreover, the news likely contradicts a recent analysis indicating that BlackRock could have a 50% chance of being approved.

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