Spot Bitcoin ETF Applications Face More Delays

The U.S. Securities and Exchange Commission (SEC) on Friday requested for extra public suggestions on a proposal to listing a spot bitcoin exchange-traded fund (ETF), possible delaying any determination on the high-profile purposes.

SEC Seeks Public Opinion on Spot Bitcoin ETF

The SEC put out a 34-page request for comment on the Ark Invest and 21Shares software, in search of views on whether or not the proposal meets regulatory requirements. The transfer pushes any determination on the bitcoin ETF past the initially reported August deadline.

The company requested for public enter on issues round potential manipulation of the proposed ETF and the underlying bitcoin market. It raised questions on whether or not the CME bitcoin futures market is a “regulated market of significant size” for the spot ETF.

The SEC additionally seeks suggestions on the liquidity and effectivity of bitcoin markets and plans for the ETF sponsors to share surveillance knowledge with the company. “Written knowledge, views, and arguments” are due in 21 days, the request particulars.

This marks the most recent roadblock for approval of a spot bitcoin ETF after years of purposes. The SEC has greenlighted bitcoin futures ETFs however resisted spot funds over worries about manipulation and inadequate regulation of crypto markets.

Friday’s request possible extends the lengthy await a spot bitcoin ETF, which issuers say would offer a safer means for mainstream buyers to achieve publicity. The SEC will weigh the brand new suggestions earlier than making any remaining determination on the Ark and 21Shares software. The senior ETF analyst for Bloomberg, Eric Balchunas, said the SEC transfer was “pretty standard.”

What do you concentrate on the SEC’s request for remark from the general public? Share your ideas and opinions about this topic within the feedback part under.