According to sources familiar with the matter, the Securities and Exchange Commission (SEC) has rejected the recent requests from different asset managers to introduce exchange-traded funds (ETFs) for Bitcoin (BTC) trading. The agency reportedly stated that the applications lacked clarity and comprehensiveness.
Finance Magnates
According to a recent report, BITO attracted the highest amount of investments totaling $65.3 million for the week ending on June 25. Furthermore, on the Friday of that same week, the fund experienced a trading volume of 500 million shares, a feat that has occurred only five times since its inception. The data also indicated a notable change in investors’ behavior, as funds flowed from the Bitcoin cash market to the ETF market.
BlackRock Leads the Pack
BlackRock’s application for a Bitcoin ETF on June 16 set off a sequence of events. The renowned asset manager stated in its application that it would utilize the CME CF Bitcoin Reference Rate to monitor Bitcoin prices. Subsequently, other asset managers followed suit and submitted similar applications to the regulators.
According to a separate report from Finance Magnates, both Invesco, and WisdomTree have also sought regulatory approval to introduce their own spot Bitcoin ETFs. Invesco, headquartered in Atlanta, Georgia, is an asset management company with $1.4 trillion in Assets Under Management (AUM). In a previous attempt in 2021, Invesco partnered with Galaxy Digital in an unsuccessful bid to launch a spot Bitcoin ETF.
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WisdomTree, a prominent ETF provider in the US with $83 billion in assets under management, intends to introduce an ETF called WisdomTree Bitcoin Trust. Subject to regulatory approval, the fund will be listed on the Cboe BZX Exchange with the ticker symbol BTCW.
According to The Wall Street Journal, the Securities and Exchange Commission (SEC) has reportedly rejected recent applications from several asset managers seeking to launch Bitcoin exchange-traded funds (ETFs). The agency deemed these applications as lacking clarity and comprehensiveness, as mentioned by sources familiar with the matter. Specifically, the SEC commented on applications submitted by Nasdaq and Cboe Global Markets on behalf of asset managers BlackRock and Fidelity.
According to a report by Finance Magnates, BITO had the highest investment amount of $65.3 million for the week ending on June 25. Moreover, on Friday of that week, the fund witnessed a trade of 500 million shares, a record-breaking event that has occurred only five times since its inception. The data also indicated a change in investor behavior, with funds shifting from the Bitcoin cash market to the ETF market.
BlackRock Leads the Pack
The situation began when BlackRock applied for inclusion in a Bitcoin ETF on June 16. They stated that they would utilize the CME CF Bitcoin Reference Rate to monitor Bitcoin prices. Following suit, several other asset managers also submitted similar applications to the regulatory body.
According to a separate report from Finance Magnates, Invesco and WisdomTree are seeking regulatory approval for their own spot Bitcoin ETFs. Invesco, based in Atlanta, Georgia, is an asset management company with $1.4 trillion in Assets Under Management (AUM). In 2021, the company attempted to launch a spot Bitcoin ETF in collaboration with Galaxy Digital but was unsuccessful.
WisdomTree, a significant ETF provider in the US with $83 billion in AUM, plans to list an ETF called WisdomTree Bitcoin Trust. If approved by the regulator, the fund will be listed on the Cboe BZX Exchange under the symbol BTCW.