By Hassan Mehmood (Saudi Arabia)
Following in the footsteps of BlackRock, a barrage of financial enterprises have leaped at the opportunity of Bitcoin spot ETFs. Some of the top players in the financial sector have sent or reset their spot Bitcoin ETF applications to SEC. The direct result of the massive enterprise interest in Bitcoin was reflected in the prices of the top currency.
Soon, altcoin markets joined the bullish flow of the crypto market momentum. Investors are expecting big money to pour into the crypto market depleting demand and raising prices.
However, recently SEC has issued some unfavorable remarks concerning Bitcoin spot ETFs. The regulatory agency declared that the Bitcoin spot ETF application is inadequate as quoted in the latest issue of WSJ.
The remark led to slowing down Bitcoin price activities in a matter of minutes. Recently, Bitcoin has been trading at the $30K threshold. SEC has directed its criticism of the spot ETF applications towards NASDAQ and COBE.
SEC Directs Financial Firms to Refile their Bitcoin ETF Applications
The aforementioned exchange markets are the facilitators that filed ETF applications on behalf of their clients including BlackRock and Fidelity. As per SEC remarks, the applications lack surveillance-sharing agreements.
Also read:It is worth noting that Surveillance-sharing agreements entail market trading activity, customer identification, and clearing process. SEC officials have emphasized the specification of spot Bitcoin exchange.
However, the critical remarks from SEC are not a negation of these applications. All applicants are entitled to make the changes according to regulators at SEC and refile. CBOE has told WSJ that it is in the process of resubmitting the applications already. This is not the first time that SEC officials have taken a stern stance toward regulating spot ETF applications.
In the past, SEC conditioned that Bitcoin trusts will have to draft a surveillance-sharing agreement with regulated markets of considerable traction.
On one hand, SEC officials mandated Bitcoin ETF issuers to register with a high-volume regulated market. The theory of regulatory agency entails that in case manipulators are trying to hinder the organic development of the regulator they can be easily identified by the sponsor and platform.
Bitcoin spot ETF is a trading product that does not have an official or legally appointed national regulator.
This phenomenon reflects the lack of appropriate and suitable regulations in America regarding the cryptocurrency sector. Meanwhile, the Commodity and Futures Trading Commission, or CFTC has been trying to get an appointment as the leading regulatory authority for Bitcoin spot ETFs.
On the other side of the spectrum, SEC officials have told media reporters that they refrain from commenting on the possibility of approval of individual applications in this regard.
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