The SEC rejected a number of bitcoin ETF applications. Fidelity and Co. are now venturing a second attempt. But BlackRock is still missing.
The U.S. Securities and Exchange Commission (SEC) and its chief Gary Gensler have their hands full. When rumors aren’t swirling that the agency chief’s chair has been sawed off, bitcoin spot ETF applications are having to be rejected left and right. That’s what happened late last week. The applications from institutional giants like BlackRock and Fidelity were “insufficient,” according to the SEC. And must be resubmitted. This was reported by the Wall Street Journal, citing insiders.
The Bitcoin ETF applications submitted did not provide enough information about surveillance arrangements, it said. The majority of the filers made improvements on the fly. The Chicago Board Options Exchange (Cboe) submitted the applications for Fidelity, WisdomTree, VanEck, Ark Invest and others. Only the world’s largest asset manager, BlackRock, is dragging its feet.
SSA: Coinbase to enable bitcoin ETF applications.
Among the key missing details was a lack of information about surveillance data sharing agreements with crypto exchanges (known as surveillance sharing agreements, or SSAs). They are designed to protect bitcoin spot ETFs.
All of the companies rely on crypto exchange Coinbase for these Surveillance Sharing Agreements. The additional agreement would “provide additional access to data on bitcoin spot trades on Coinbase if the exchange determines that it is necessary as part of the surveillance program,” according to Ark Invest’s new bitcoin ETF filing, for example. Coinbase is itself in litigation with the SEC. Fidelity and Co. don’t seem to be deterred by that. BlackRock is also said to be relying on Coinbase for its application.
Picture Copyright: melpomen
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