IMPORTANT POINTS:
- In January, the SEC rejected applications for Bitcoin ETFs, saying they are not “sufficiently comprehensive.”
- Although the price of Bitcoin rose when big funds applied to launch a spot Bitcoin ETF, many traders knew that the chances of the regulatory body saying yes were unlikely.
- According to the SEC, asset managers can update the document and reapply.
The SEC rejected applications for Bitcoin ETFs submitted by all fund managers, including BlackRock and Fidelity, among others.
The regulatory body informed the Nasdaq and Cboe Global Markets exchanges, which have just requested the launch of the spot Bitcoin exchange-traded funds on behalf of the managers, on Friday morning, that the requests “were not clear and comprehensive enough.”.
Many investors anticipated that this could happen. Even an informal estimate clarified that there was only a 0.58% chance that the SEC would greenlight BlackRock’s application.
On the other hand, the US regulatory body described as “inadequate” all the requests that arrived in recent days at the SEC offices by large asset managers.
In order to excuse itself, however, the SEC stated that the administrators were returning the applications because they did not name the Bitcoin exchange on which they were supposed to enter into a “joint custody agreement” or did not provide enough information on the details. of these surveillance agreements.
For this reason, the SEC clarified that asset managers can update the document and reapply. The merchants know that if they send the reformulated requests, they will be rejected again for other reasons.
Following the news, Bitcoin fell more than 1% to $30,175 as of this writing.
