Applicants for a spot Bitcoin ETF have a good chance of being approved if they can prove that it is a more efficient and effective way for investors to buy a digital asset. This was stated by the former chairman SEC Jay Clayton.
“If [компании] right that the spot stock market has a similar performance to the futures market, it will be difficult to resist the approval of the instrument,” the official added.
Clayton warned that the process would not be quick, noting the need for careful regulation. However, he acknowledged the “impressive strides” made by the crypto industry, especially in the context of institutional investment.
The former chairman led the department from 2017 to 2020. During this period, the Commission rejected several applications for a spot Bitcoin ETF and filed a lawsuit against Ripple Labs.
According to Clayton, in the past, the regulator has not accepted an exchange-traded fund based on the first cryptocurrency due to a lack of transparency and concerns about protecting investors.
“When the SEC approved a futures-based ETF, officials said, ‘Let’s look at the futures market: we see oversight, we see investor protection, which is enough. But they didn’t see the same thing on spot,” Clayton explained.
On June 15, BlackRock filed an application for a spot Bitcoin ETF with the SEC. Following the financial giant, similar requests came from Valkyrie, Fidelity Investments, WisdomTree and Invesco. In the ARK Invest queue with 21Shares, they have priority based on the time of submission of documents.
On June 30, sources told the WSJ that the Commission had returned the applications because they did not contain sufficient information regarding the so-called joint monitoring agreement or the details of this mechanism. The latter has been a key addition to BlackRock’s bid.
Subsequently, the above-mentioned companies promptly sent updated proposals to the department.
Recall, according to Bernstein analysts, the regulator will not be able to maintain its negative position in relation to spot ETFs based on the first cryptocurrency for a long time.
Circle CEO Jeremy Allair has predicted that the recent spate of bitcoin exchange-traded fund filings will lead to SEC approval.
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