Earlier, the SEC was hit with several applications to launch bitcoin spot exchange traded funds – following BlackRock, Fidelity, Invesco, Wisdom Tree, Val and others filed their applications. The launch of a bitcoin spot ETF could provide investors with the ability to access the market without having to deal with the underlying asset.
However, the SEC argues that these applications are not sufficiently clear and comprehensive. Companies can update them and reapply. In doing so, firms must have a “joint oversight agreement” or provide sufficient information on the details of the oversight arrangements, the regulator said. Fidelity, WisdomTree, VanEck, Invesco and Ark Investment Management have already reapplied.
It was recently reported that trading volume on centralized cryptocurrency exchanges increased significantly in the last week. Analysts attribute this to a bid by BlackRock and others for a bitcoin spot ETF.
The bidding frenzy began in early June, when BlackRock applied to launch the iShares Bitcoin Trust. The paper stresses that previously approved products traded on the spot exchange in the commodities and foreign exchange markets “are generally unregulated, and the SEC relies on the futures market.”. Therefore, the company sees no obstacles to approving such a spot ETF.