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On July 14th the Securities and Exchange Commission (SEC) acknowledged that Spot Bitcoin ETF Applications from Fidelity, VanEck, WisdomTree and Invesco.
This recognition, published on the SEC’s website, marks a major milestone in the cryptocurrency industry’s quest for Bitcoin Exchange Traded Fund (ETF) spot approval.
Additionally, similar confirmations were reported for BlackRock today, while companies such as ARK Investment and BitWise had previously received confirmations from the regulator.
It is important to understand that this confirmation only guarantees the immediate approval or rejection of the applications.
However, it signifies progress in the application process and positive progress. The SEC will now enter a deliberation phase, which is expected to last approximately 240 days.
During this time, the regulator has the power to make decisions about the funds, including approving, disapproving or postponing a decision as suggested by analysts.
In addition, the acknowledgment gives the public the opportunity to comment on the applications.
The SEC’s historical reluctance to approve a spot BTC ETF has left many market participants frustrated.
However, recent recognition of these filings suggests that the SEC is actively reviewing the potential of these investment products.
One of the main concerns of the regulator is the vulnerability of the Bitcoin price to manipulation.
Still, experts believe that investors would be interested in such a product as it would allow them to participate in Bitcoin without having to worry about the custody of the asset.
SEC fears prompted collaboration between Cboe and Coinbase for spot bitcoin ETFs
The concerns raised by the SEC, as reported by the Wall Street Journal on June 30, 2023, revolve around the lack of clarity in the Agreements for sharing surveillance measures (SSAs) between the wealth manager (Fidelity, WisdomTree, VanEck and Invesco) and the Exchange (Cboe Global Markets or Nasdaq) who would list the ETFs.
These SSAs are vital to maintaining market integrity and preventing fraudulent or manipulative trading activity.
To address these concerns, Cboe and Coinbase have worked together to improve the transparency and integrity of the proposed ETFs.
According to Nasdaq’s filing, the exchange reached an agreement with Coinbase on June 8 for a monitoring sharing agreement.
Additionally, when Cboe’s BZX exchange resubmitted its spot bitcoin ETF applications, it named Coinbase as the market for its monitoring sharing arrangement.
In response to this partnership, Fidelity, VanEck, Invesco and WisdomTree promptly resubmitted their filings on June 30th.
The revised filings expressly express intent to enter into a surveillance agreement with Coinbase, Inc.
However, it is important to note that no spot BTC ETF has been approved in the United States.
Still, the wealth managers’ efforts and their partnership with Coinbase demonstrate their commitment to addressing SEC concerns and improving the chances of approval.
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