U.Today - The SEC has expressed concerns over recent filings for spot Bitcoin ETFs, asserting that they lack clarity and comprehensiveness, according to a recent by the Wall Street Journal.
The watchdog has communicated its concerns to Nasdaq and Cboe, putting filings from BlackRock (NYSE:BLK), Fidelity, and others under scrutiny.
The news has been accompanied by a slight dip in Bitcoin's value, with the cryptocurrency trading at $30,225, down 0.9% over the past 24 hours, CoinGecko data shows.
As per the Wall Street Journal, has indicated to exchanges that the current batch of Bitcoin filings is not up to par.
However, Eric Balchunas, senior ETF analyst for Bloomberg Intelligence, that this development may not be as dire as the headline suggests. Balchunas explained that the SEC is essentially asking for more specificity, particularly regarding the naming of the "crypto exchange" and more details on the Surveillance-Sharing Agreement (SSA), a requirement considered by many as reasonable and arguably good news.
Further insights from James Seyffart, another prominent ETF analyst, also suggest that the SEC's request aligns with what industry experts had predicted. Seyffart stated, "Everything we've said has been 'assumed exchange' and we 'assume it's Coinbase (NASDAQ:COIN)'. But no exchange was actually named. Of course, the SEC is going to be like: 'Tell us who the exchange is and show us the supposed Surveillance-Sharing Agreement'."
The SEC's request for more information doesn't necessarily imply a death sentence for Bitcoin ETFs, but it doesn't automatically translate to approval either. Seyffart reiterated that this was always going to be a part of the process, and the SEC could still deny approval based on the "market of significant size" point, or on the "regulated market" point.
The crypto industry and prospective ETF issuers now wait with bated breath, as the future of Bitcoin ETFs in the US hangs in the balance.