On July 14, a noteworthy event within the cryptocurrency sector caught the eye of enthusiasts and investors: the Securities and Exchange Commission (SEC) acknowledged spot Bitcoin ETF applications from prominent asset management companies like Fidelity, VanEck, WisdomTree, and Invesco. While this doesn’t guarantee immediate approval or rejection, it is indeed a step towards progress and a tangible sign of the recognition of the potential of these investment products by SEC.
While this development has been positively received, it is equally important to note that during the estimated 240-day deliberation period, the SEC holds the authority to approve, deny or postpone a decision on the funds. This period also allows public comments on the applications, further promoting transparency within the crypto space.
However, the road to this acknowledgment from SEC has not been without its speed bumps. The anticipation around Bitcoin ETF approval has long been tainted with the regulatory agency’s historical reluctance, much to the frustration of many within the industry. At the heart of this reluctance lies a principal concern: that Bitcoin’s price might be prone to manipulation.
The news on this recognition came in parallel with a development addressing SEC’s concerns. Paving a roadmap towards transparency, Cboe and Coinbase collaborated to clarify the details on the surveillance sharing agreements (SSAs) between the asset managers and exchanges that are compulsory for maintaining market integrity and critical in preventing fraudulent trading activities. A filing from exchanges such as Nasdaq has indicated the alignment with Coinbase to curtail any misgivings about the SSAs.
Reported by The Wall Street Journal, this move was quickly followed by the resubmission of filings by Fidelity, VanEck, Invesco, and WisdomTree on June 30, stating their intent to align with Coinbase’s surveillance sharing agreement. This flurry of filing adjustments showcases the asset management firms’ determination to appease the SEC’s concerns, thereby improving chances of approval.
Despite this, a sobering revelation remains: no spot BTC ETF has secured approval within the United States yet. Still, this recent string of events signifies a shift towards positive transformation in the cryptocurrency regulation landscape, evoking optimism amongst fervent observers.
Source: Cryptonews
