- The SEC dismisses a wave of applications for spot Bitcoin ETFs as inadequate.
- The decision has caused significant fluctuations in the Bitcoin market.
- The dismissal raises questions about the future of crypto trading in the US.
In a move that has sent shockwaves through the crypto market, the U.S. Securities and Exchange Commission (SEC) dismissed a wave of applications spot Bitcoin ETFs, deeming them inadequate.
Despite a recent surge in interest in cryptocurrency trading, SEC comments raised questions about the future of Bitcoin and other digital currencies.
SEC’s Action Shocks the Market
On Friday, June 30, Wall Street Journal reported that the SEC found a recent wave of applications for spot Bitcoin ETFs inadequate. This led to a significant drop in the price of Bitcoin, which briefly fell below $30,000.
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According to the Wall Street Journal, the agency found that the filings on behalf of asset managers, including Black Rock and Fidelity, were not sufficiently clear and comprehensive.
The SEC’s dismissal of these filings has raised concerns about the future of Bitcoin trading and the broader cryptocurrency market.
Which Companies Applied for Spot Bitcoin ETFs
In June 2023, several major asset managers applied for spot Bitcoin ETFs, continuing their attempts to integrate cryptocurrencies into mainstream financial systems.
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BlackRock, the world’s largest asset manager, filed for a Bitcoin ETF on June 15, 2023. BlackRock’s iShares Bitcoin Trust would trade on the Nasdaq and use Coinbase Custody if approved.
On June 29, 2023, Fidelity Investments refiled its application with the SEC. The Cboe BZX Exchange filed a proposal with the SEC to list and trade shares of the Wise Origin Bitcoin Trust, a spot Bitcoin ETF backed by Fidelity. The same day, Ark Investment Management, led by the well-known crypto advocate Cathie Wood, made a similar filing.
These applications represent significant steps toward accepting crypto in traditional finance. However, the SEC’s dismissal suggests the road to approval will be challenging.
On the Flipside
- Other countries, including Canada, Switzerland, and Brazil, allow spot Bitcoin ETFs.
- Crypto insiders, including Coinbase CEO Brian Armstrong, say that US regulatory crackdown will hurt the country in the long run.
Why This Matters
The SEC’s dismissal of Bitcoin ETF filings is a significant development for crypto traders. It signals a cautious approach from regulatory authorities toward integrating crypto into the financial system.
Read more about Fidelity’s arguments for Bitcoin ETFs:
Fidelity: FTX, Voyager Collapse Are Why We Need Bitcoin ETFs
Read more about South Korea’s regulatory action in the crypto market:
South Korea Crypto Bill Aims to Prevent Repeat of Terra-Luna
