By Hassan Mehmood (Saudi Arabia)
The first step towards approval of a Bitcoin spot ETF application is the entrance into the Federal Register. Thus far, no Bitcoin ETF spot applications have made it to the national legal journal.
However, recently SEC has announced that the firm has made preparations to add the first-ever Bitcoin ETF spot application into the Federal Register after deliberation. It is important to note that SEC has remained a negative stance toward the cryptocurrency markets.
The agency has already declined the first attempt of the spot ETF application approval attempts by companies like BlackRock and Ark Invest. However, both firms in addition to others in the same line have proceeded to enter the race for the second time after making amends as per SEC commentary.
There has been a strong perception in the financial and crypto markets that BlackRock is very likely to get the spot Bitcoin ETF approval on account of its previous track record.
SEC Asks for Public Comments on Five Spot ETF Applications
SEC officials have confirmed that they have published an inter-agency review of the Bitcoin spot ETF applications. However, the agency is also open for public comments on all five Bitcoin spot ETF applications that are submitted through the CBOE.
These applications include names like Wise Origin, VanEck, Invesco Galaxy, WisdomTree, and ARK 21Shares. The race for the Bitcoin spot ETF application has affected the share price of the Coinbase exchange.
It is worth noting that Coinbase is a publicly traded company and cryptocurrency exchange operating out of America. However, following the SEC commentary BlackRock and other financial enterprises have nominated Coinbase in the surveillance sharing contract.
Coinbase will now serve as an intermediary between regulators and consumers for all spot Bitcoin applications processed through CBOE. With the nomination announcement the share price of Coinbase underwent a high surge of 16% that is expected to go higher once the spot Bitcoin ETFs are approved.
There is a lot of talk about the possible changes that the approval of a Bitcoin spot ETF application can bring to the crypto sector of the USA. The addition of the surveillance or information sharing agreement is making all the difference between the approval of the spot Bitcoin ETF application filed by BlackRock and others.
These types of information-sharing agreements work in the same way as subpoenas where the regulators and ETF issuers reserve the right to ask for specified trading and trader information.
However, the SSA has made another appearance in the Spot Bitcoin ETF application filed by the Gemini exchange back in 2017. The exchange serving as the middleman in this case Coinbase is liable to include Personally Identifiable Information (PII) such as names, addresses, and other important details.
The only caveat with SSA is that cryptocurrency investors in general struggle with the idea of sharing their personal information. However, such practices are very common in equity exchanges and allow regulators to collect legal background in case of suspicious activity.
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