US SEC Has Deemed Bitcoin ETF Filings To Be Inadequate

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US SEC

There may be a long wait for a spot in Bitcoin ETF in the United States, as the US SEC has labeled the recent applications of investment managers as quite inadequate. According to the Wall Street Journal, the securities regulator informed the Nasdaq and the Chicago Board Options Exchange that the filings weren’t sufficiently clear and comprehensive.

The exchange does represent the asset managers in the filing of the financial product. In the eyes of the SEC, the exchanges should have ideally named the spot BTC exchange with which they would have a surveillance-sharing agreement, or provided sufficient information regarding the details of the agreements. However, the asset managers can also resubmit the filings after the clarification of all the information. 

Bitcoin ETF Applications Denied By US SEC

The US SEC did receive quite a flurry of applications over the last few weeks since BlackRock joined the list of companies that were seeking to debut the first spot Bitcoin ETF of Wall Street. The application by BlackRock went on to introduce a new surveillance-sharing agreement, under which any information about clearing activities and market trading was to be shared between the entities to avoid the possibility of market manipulation.

The application of BlackRock led 21Shares and ARK Invest to completely amend the third application for a spot BTC ETF that would include a similar surveillance agreement. Other asset managers that amended or refiled their applications in the last few days include WisdomTree, Invesco, Fidelity, and Valkyrie. ARK Invest, it has been reported, is a front-runner in the race. 

It should come as no surprise to anyone that spot Bitcoin ETFs have always been denied since 2017 by the US SEC. In Canada, however, the financial product is already available to people. There are three significant funds- CI Galaxy Bitcoin, Purpose Bitcoin, and 3iQ Coinshares- which are invested in spot Bitcoin.