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US SEC Reviewing All Recent Spot Bitcoin ETF Applications
The US Securities and Exchange Commission (SEC) has started reviewing all the spot Bitcoin ETF applications that it received over the last month, starting with BlackRock’s.
The regulator recently released documents for public consultations, but the official review process will begin once the filings are published in the federal register. The SEC is seeking comments on the ETF applications from Cboe, including those from Wise Origin, WisdomTree, VanEck, Invesco Galaxy, and ARK 21Shares. Additionally, the SEC is also seeking comments on BackRock’s iShares Bitcoin Trust, which was filed on Nasdaq.
BlackRock’s request to offer a Bitcoin ETF has been officially added to the Securities and Exchange Commission’s records for review. This is a significant step forward for the highly anticipated Bitcoin-related proposal.
BlackRock’s application has prompted a new wave of optimism in the crypto market. It also triggered some additional filings for spot Bitcoin ETF from other financial players in the market.
After the SEC expressed concerns about BlackRock’s initial application, the company submitted a revised version that included a “surveillance sharing” clause. This clause would involve monitoring of crypto exchange Coinbase and reporting any potentially illegal activities. Following BlackRock’s lead, other companies such as Valkyrie, Fidelity, and ARK Invest also updated their applications to include a similar provision.
Why a Spot Bitcoin ETF Will Be a Game-Changer?
A spot Bitcoin ETF is a type of investment that tracks the value of Bitcoin without needing to own the actual cryptocurrency. It can be traded on a traditional stock exchange. While there is already a Bitcoin ETF based on Bitcoin futures, a spot ETF linked to the current price of Bitcoin is highly desired in the industry. However, the SEC has been resistant to approving such an ETF in the past, which has been seen as a significant setback.
Now that BlackRock’s application is on the SEC’s official calendar, it will be published in the Federal Register. This publication will initiate a 21-day period for the public to provide comments on the application.
In an interview with CNBC last week, BlackRock CEO Larry Fink said:
“We believe we have a responsibility to democratize investing. We’ve done a great job, and the role of ETFs in the world is transforming investing. And we’re only at the beginning of that. We are working with our regulators because, as in any new market, if BlackRock’s name is going to be on it, we’re going to make sure that it’s safe and sound and protected.”
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