“But that the filing in themselves are ‘inadequate’, being not clear and comprehensive. In short the SEC needs more descriptive detail around the proposed provisions to be able to make a judgment.”
There have been about 30 tries for a bitcoin product, according to a tally from Bloomberg Intelligence. But applications have faced opposition by regulators, who have in the past cited market concerns and a lack of investor protections, among other things.
Fidelity originally filed for the Wise Origin Bitcoin Trust in 2021, which was denied by the SEC in January 2022. The SEC has already approved a futures-based bitcoin ETF.
Fans of digital assets are excited about the prospect of crypto potentially becoming more easily accessible to everyday investors, and the wave of filings has been a boon for token prices.
Bitcoin jumped back above $US30,000 in June and is trading at its highest levels in about a year. The token on Friday traded around $US30,300. That’s still less than half the record of almost $US69,000 reached in November 2021.
Both Nasdaq and Cboe are working on providing new information in the hopes they meet the SEC’s threshold for approval, according to the people who asked not to be named publicly. They plan to revise and re-file their applications based on feedback and talks with the regulators, the people said.
The SEC would take public comment on the amended application before making any final decision, the people said. Eventually, the agency will give a firm yes or no for approval, depending on their comfort level with revised applications, they said.
Bloomberg