The Securities and Exchange Commission (SEC) has deemed recent filings for a spot Bitcoin exchange-traded fund (ETF) in the US as inadequate, according to the WSJ.
According to the SEC, the Exchanges Should Have Named the Specific Bitcoin Exchange With Whom They Would Have a "Surveillance-Sharing Agreement"
The Securities and Exchange Commission (SEC) has deemed recent filings for a spot Bitcoin exchange-traded fund (ETF) in the US as inadequate, according to the WSJ.
The SEC has notified Nasdaq and the Chicago Board Options Exchange (Cboe) that their filings are not “sufficiently clear and comprehensive.” The exchanges represent asset managers in the filings of the ETF.
According to the SEC, the exchanges should have named the specific Bitcoin exchange with whom they would have a "surveillance-sharing agreement" or should have supplied enough information regarding the specifics of that surveillance arrangement. After correcting the data, the asset managers can resubmit the filings.
Following the news, Bitcoin (BTC) plunged below $30,000 briefly, falling over 3%. However, it has since recovered and is currently trading around $30,600. Cboe would refile while naming Coinbase as the crypto exchange it would enter a "surveillance-sharing agreement" with.
BlackRock joined the group of firms vying to launch the first Bitcoin ETF on Wall Street by announcing a "surveillance sharing agreement." This led other asset managers like ARK Invest and 21Shares, Invesco, WisdomTree, Valkyrie, and Fidelity to resubmit or modify their spot Bitcoin ETF applications.
The sponsor of a Bitcoin trust would need to sign a surveillance-sharing agreement with a regulated market with a sizable market, according to past SEC statements. The spot Bitcoin markets are currently unregulated by any federal agencies, a situation that the Commodity Futures Trading Commission has long advocated for changing.
