Fidelity Investments and several other firms have refiled applications for a spot Bitcoin exchange-traded fund (ETF) after the initial filings were deemed insufficient by the US Securities and Exchange Commission (SEC). In addition to Fidelity, the companies who have resubmitted their applications include Invesco, VanEck, 21Shares, and WisdomTree. These firms are among eight seeking to launch the first crop of US spot Bitcoin ETFs in response to BlackRock Inc.’s surprise filing for such a fund in June.
One key detail that the refiling companies have added is that Coinbase Global Inc. will provide market surveillance for their funds. This information was not included in the first set of filings. Crypto market surveillance is seen as crucial for gaining SEC approval for a spot Bitcoin ETF, as it can greatly reduce fraud and market manipulation. Previously, the SEC rejected around 30 spot Bitcoin ETF applications citing these concerns.
Coinbase is also expected to provide various services for the other proposed fund issuers, including custody services. It is believed that Coinbase’s involvement with the ETFs could provide a revenue influx for the crypto-exchange industry, which has been facing low volumes. Last year, Coinbase’s revenue was less than half of 2021, when the industry experienced a bull market. This news comes at a time when Coinbase is also battling the SEC, which has accused the company of running an illegal exchange.
The prospect of a spot Bitcoin ETF has excited fans of digital assets, as it could potentially make crypto more easily accessible to everyday investors. The wave of filings for ETFs has been a boon for token prices, with Bitcoin surpassing $30,000 in June and currently trading at its highest levels in a year. However, it is important to note that these rule filings are not effective until approved by the SEC.
Following BlackRock’s filing for the ETF in June, seven other firms have filed or refiled for spot ETFs, indicating market optimism that the SEC may reverse its previous stance against such funds. It is worth noting that the SEC did approve ETFs tied to Bitcoin futures in 2021, suggesting a partial change of view.
The involvement of Coinbase and the refiling of applications by several firms indicate renewed hope for the approval of spot Bitcoin ETFs. Investors and enthusiasts are closely watching the developments, hoping for broader crypto accessibility while being aware that SEC approval is still pending.
– With assistance from Katherine Doherty and Lydia Beyoud.
Note: This article is not endorsed by or affiliated with Bloomberg.