The U.S. Securities and Exchange Commission (SEC) reportedly says BlackRock and Fidelity’s applications for a spot Bitcoin (BTC) exchange-traded fund (ETF) are unclear and incomprehensible.
According to a new report from The Wall Street Journal, the regulator recently told Nasdaq and the Chicago Board Options Exchange (CBOE), which filed the filings on behalf of the companies, that the filings are deficient.
Some of those watching the situation closely expected BlackRock’s filing to appease the SEC over the agreement that would share “surveillance” of a spot BTC ETF with Nasdaq, which would list it, according to the report.
A spot Bitcoin ETF allows investors to buy and track Bitcoin through a brokerage, just like stocks and other commodities like gold.
However, the regulatory body said it bounced the filings because it failed to name the Bitcoin ETF they were expected to have a supervisory agreement with or provide information on how the supervisory agreement would work.
According to Bloomberg senior ETF analyst Eric Balchunas, it is debatable good news.
“In principle [the] SEC wants them to name the “crypto exchange” and provide more details [surveillance agreement]. That is understandable, perhaps good news. I was under [the] impression they should update that too.
BlackRock, the world’s largest investment firm with more than $10 trillion in assets under management, filed for its first BTC ETF earlier this month, a move that led billionaire Mike Novogratz to speculate that blue-chip capital would flow to the digital asset industry. will flow.
However, the SEC has so far rejected every offer for a spot of Bitcoin, including applications from companies such as VanEck and ARK Invest.
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Featured image: Shutterstock/laskoart/Andy Chipus