• Several asset managers have refiled applications for their spot Bitcoin ETFs after reports of SEC rejections due to insufficient clarity in the SSA.
• The Wall Street Journal reported that Fidelity, WisdomTree, VanEck, Invesco, and BlackRock’s were likely to be rejected by the SEC.
• The SEC’s concerns revolved around the applications’ inability to identify a specific spot Bitcoin exchange that would list the products.
Asset Managers Refile Spot Bitcoin ETF Applications
Several asset managers have resubmitted applications for their spot Bitcoin ETFs following this morning’s reports that those applications did not meet the U.S. Securities and Exchange Commission’s (SEC) standards over language surrounding surveillance-sharing agreements.
Wall Street Journal Reports on Rejection by the SEC
The Wall Street Journal reported on June 30, 2023, that spot Bitcoin ETF applications submitted by Fidelity, WisdomTree, VanEck, Invesco, and BlackRock’s were likely to be rejected due to insufficient clarity in the SSA between those asset managers and the exchanges that would list the products—in these cases, either Cboe Global Markets or Nasdaq.
SEC’s Concern Over Surveillance-Sharing Agreements
The SEC’s concerns revolved around the applications’ inability to identify a specific spot Bitcoin exchange that would list the products. This lack of specificity led to further confusion concerning how these products could ensure proper surveillance of any potential market manipulation or fraud when trading occurs outside their jurisdiction.
Asset Managers Resubmit Their Applications
In response to this news of impending rejection from the SEC over language concerning surveillance agreements have led to a wave of updated refilings with more specific language about which exchanges will be used and what sort of oversight protocols they will have in place.