The U.S. Securities and Exchange Commission (SEC) is reportedly saying that BlackRock and Fidelity’s applications for a spot Bitcoin (BTC) exchange-traded fund (ETF) are unclear and incomprehensive.
According to a new report by The Wall Street Journal, the regulatory agency recently told Nasdaq and the Chicago Board Options Exchange (CBOE), who filed the applications on behalf of the firms, that the applications are inadequate.
Some of those keeping a close eye on the situation expected that BlackRock’s application would appease the SEC because of its agreement that would share “surveillance” of a spot BTC ETF with Nasdaq, who would list it, according to the report.
A spot Bitcoin ETF would allow investors to purchase and track Bitcoin through a brokerage, much like stocks and other commodities such as gold.
However, the regulatory agency said it returned the filings because it failed to name the Bitcoin ETF with which they were expected to have a surveillance agreement or provide information on how the surveillance agreement would work.
According to Bloomberg senior ETF analyst Eric Balchunas, this is arguably good news.
“Basically [the] SEC wants them to name the ‘crypto exchange’ and give more details on [surveillance agreement]. That’s understandable, arguably good news. I was under [the] impression they’d have to update that as well.”
BlackRock, the world’s largest investment firm with over $10 trillion in assets under its management, first filed for a BTC ETF earlier this month, a move that prompted billionaire Mike Novogratz to speculate that blue-chip capital will flow into the digital asset industry.
However, the SEC has thus far rejected every bid for a spot Bitcoin, including applications from firms such as VanEck and ARK Invest.
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