The US Securities and Exchange Commission (SEC) recently approved applications by asset managers to launch Spot Bitcoin Exchange-traded funds (ETFs) were not clear and comprehensive enough, said a source familiar with the matter.
The SEC has conveyed its concerns to the Nasdaq and Cobo Global Markets exchanges, which filed the application on behalf of asset managers including BlackRock and Fidelity, the source said Friday.
Bitcoin has rallied since BlackRock filed its application on June 15, but declined on Friday after the Wall Street Journal first reported the SEC rejection. The world’s largest cryptocurrency was last down 1 percent at $30.142 (roughly Rs. 2,500).
The SEC, Fidelity, BlackRock and Nasdaq declined to comment on the report, while Cobb was not immediately available.
ETF filings by such prominent companies have raised new hopes among investors that bitcoin ETFs will eventually be approved by the SEC, and have revived interest. cryptocurrency who have been hit by a series of crypto company meltdowns, including the sudden collapse of an exchange ftx At the end of last year.
The SEC has rejected dozens of spot bitcoin ETF applications in recent years, including one from Fidelity in January 2022.
In all cases, it said the filings did not meet standards designed to prevent fraudulent and manipulative practices and protect investors and the public interest.
To address these concerns, BlackRock and Fidelity’s filing proposed an oversight mechanism aimed at preventing manipulation, but the applicants did not specify which bitcoin exchanges would be involved.
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