SEC spells out bitcoin ETF concerns to asset managers -source

economictimes.indiatimes.com:

SEC) has said recent applications by asset managers to launch spot bitcoin exchange-traded funds (ETFs) were not sufficiently clear and comprehensive, a source familiar with the matter said. The SEC has communicated its concerns to the exchanges Nasdaq and Cboe Global Markets which filed the applications on behalf of asset managers including BlackRock and Fidelity, the source added on Friday. Bitcoin, which has jumped since BlackRock filed its application on June 15, fell after the Wall Street Journal first reported the SEC rejection on Friday. The world's largest cryptocurrency was last down 1% at $30.142. The SEC, Fidelity, BlackRock and Nasdaq declined to comment on the report, while Cboe was not immediately available.

Did you Know?

SAP has launched a new enterprise on the Metaverse with the aim of accelerating cloud adoption among Indian firms. The interactive and immersive ‘cloud on wheels’ platform will enable customers to experience the full range of SAP’s offerings and reimagine processes for improved business outcomes.

The ETF filings by such major firms had sparked renewed investor hopes that a bitcoin ETF would finally be approved by the SEC, and revived interest in cyptocurrencies, which have been hit by a series of crypto company meltdowns including the sudden collapse of exchange FTX late last year. The SEC has rejected dozens of spot bitcoin ETF applications in recent years, including one from Fidelity in January 2022. In all the cases, it said the filings did not meet the standards designed to prevent fraudulent and manipulative practices and protect investors and the public interest. In a bid to address these concerns, the BlackRock and Fidelity filings proposed a surveillance mechanism