In a recent turn of events, the United States Securities and Exchange Commission (SEC) has raised concerns over the adequacy of the spot Bitcoin exchange-traded fund (ETF) filings submitted by several prominent asset managers. The SEC reportedly conveyed its reservations to the Nasdaq and Chicago Board Options exchanges (Cboe), stating that the filings lack clarity and comprehensive details.
The ETF applications, representing asset managers such as BlackRock, Fidelity, ARK Invest, and others, have come under scrutiny from the SEC. The commission believes that the filings should have included more information regarding the “surveillance-sharing agreements” and the specific spot Bitcoin exchanges involved in these agreements.
The news of the SEC’s reservations has had a noticeable impact on the crypto market, with Bitcoin, the leading cryptocurrency, experiencing a slight decline of 0.49% to trade at $30,033.32 according to CoinMarketCap data.
Crypto enthusiasts and investors have responded to the SEC’s stance, and one Twitter user, @DavidPBitcoin, has speculated that the commission may be showing favoritism. According to this analyst, the SEC’s actions seem aimed at elevating BlackRock’s Bitcoin ETF application in the approval process, potentially at the expense of other asset managers.
Notably, BlackRock Inc., with a total assets under management (AUM) of $9.09 trillion, filed for a spot market Bitcoin ETF on July 15, prompting other prominent asset managers such as Fidelity, Invesco, WisdomTree, and ARK Invest to follow suit.
@DavidPBitcoin further alleges that the SEC may be trying to reshuffle the order of consideration by causing the existing ETF filings to be withdrawn, thereby allowing BlackRock to regain a more favorable position upon resubmission. However, it should be noted that no concrete evidence currently supports this theory, and there is no indication of any antagonistic relationship between the SEC and ARK Invest.
As the crypto market awaits further developments, the industry will closely monitor any regulatory decisions that may impact the future of Bitcoin ETFs in the United States.