The SEC called "inadequate" applications for a spot bitcoin ETF. Bitcoin flew down
Date: 2023-07-01 Author: Karina Ziganova Categories: BLOCKCHAIN
The U.S. Securities and Exchange Commission (SEC) has said that the massive filing of applications to open a spot bitcoin ETF looks "inadequate." The Wall Street Journal (WSJ) writes about this, citing sources.
The SEC told the Nasdaq and Cboe exchanges that recent applications for spot bitcoin ETFs were not "clear and comprehensive," the newspaper writes. Representatives of the Commission said that the companies did not provide enough information on how the data will be shared. In addition, none of the applications met standards designed to prevent fraud and manipulation and protect investors and the public interest.
After the SEC's statements, the price of bitcoin (BTC) fell by more than 5%. At the moment, the price dropped below $30,000 to $29,846. At the time of writing, one BTC can be bought for $30,160.
Due to the sudden volatility, more than $88.5 million worth of transactions were liquidated in the market in less than an hour, of which 89.14% accounted for long positions in bitcoin.
Which companies have applied for a spot bitcoin ETF
Over the past few weeks, major market players have applied to open a spot bitcoin ETF. The first was BlackRock with the iSHARES BITCOIN TRUST fund. The initiative provoked a wave of applications for the launch of similar ETFs from financial giants.
Then BlackRock was joined by investment giant Bitwise Asset Management. On June 16, the company refiled after the SEC rejected the company's petition last year. The Commission argued that it would not be able to ensure adequate joint surveillance and protect investors from market manipulation.
In addition, applications for the opening of similar funds were submitted by the well-known provider of services in the segment of ETFs and exchange-traded products WisdomTree and the financial giant Fidelity Investments.
How Spot Bitcoin ETFs Will Change the Market
The head of Galaxy Digital, Mike Novogratz, believes that the approval of applications for spot bitcoin ETFs will greatly simplify access to the digital asset market for institutional capital. This may be the best event in the history of BTC, he believes.
Moreover, he sees no reason why there should not be a Bitcoin ETF on the market. Among the favorites in the race to open a spot bitcoin ETF is BlackRock.
