Is The SEC Ready To Approve Bitcoin ETFs?
The U.S. Securities and Exchange Commission submitted several filings on Sept. 28 that raised the prospect of issuing a spot Bitcoin ETF.
According to the filings, the SEC will initiate a procedure during which it will make the final decision on the launch of a spot Bitcoin ETF. The regulator is asking the public to comment on the feasibility of launching the product. For example, the SEC is concerned about the vulnerability of spot Bitcoin ETFs to fraud. The regulator is also worried whether aspects such as geographic location, amount of capital, and slow transactions are resistant to market manipulation.
The SEC is further requesting an evaluation of whether an agreement between Coinbase and certain exchanges under which Coinbase will detect and prevent fraud is appropriate.
A decision on a new class of spot Bitcoin ETFs could be influenced by the Chicago Mercantile Exchange. The SEC is wondering if the CME is a sufficiently regulated market. The CME is where Bitcoin futures ETFs are traded.
While these filings raised hopes that the SEC is willing to approve applications for spot Bitcoin ETFs, it is not direct evidence that the regulator will do so. On the same day, the SEC deferred several similar applications from companies including BlackRock, Bitwise Invest, Invesco and Galaxy Digital. Applications from WisdomTree, VanEck and Fidelity could likely also be delayed given the SEC's impending shutdown. Thus, the filings published the day before are just an expression of concerns about the launch of spot Bitcoin ETFs, which require more in-depth analysis.
Okay. Guessing the SEC is done for the night. We're expecting the other 3 #bitcoin ETF delay orders tomorrow before the government shut down. Firms remaining are @WisdomTreeFunds, @vaneck_us, and @Fidelity https://t.co/mS71wsZZDU pic.twitter.com/qcQdBUGEb5— James Seyffart (@JSeyff) September 28, 2023