SEC scrutinises Bitcoin ETF filings

Despite increased interest in Bitcoin exchange-traded funds (ETFs), regulatory challenges persist, according to reports from the Securities and Exchange Commission (SEC).

Last week witnessed a flurry of activity in the ETF space, starting with Blackrock Inc.’s filing and the unexpected approval of the Volatility Shares Trust 2x Bitcoin Strategy ETF. Following these developments, Cboe BZX Exchange resubmitted its request to the SEC seeking approval for the Wise Origin Bitcoin Trust, after the previous rejection of the Fidelity West Origin Bitcoin Trust filing.

The market initially responded positively to the uptick in ETF activity, as Bitcoin (BTC) reached a yearly high of $31,475. However, the mood was dampened on Friday when news emerged regarding the SEC’s evaluation of spot BTC ETF applications. According to the Wall Street Journal, the SEC found these filings, including those from Blackrock and Fidelity, to lack clarity and comprehensiveness.

One particular area of concern for the SEC was the absence of surveillance-sharing agreements or detailed information about such agreements. In response, several prominent players in the industry, including 21Shares, ARK Invest, Blackrock, Fidelity, Invesco, Valkyrie, and WisdomTree, reportedly made amendments and resubmitted their applications on Friday.

The mixed news surrounding ETFs resulted in Bitcoin experiencing a relatively flat week. BTC saw a marginal decline of 0.27% from Monday to Friday, settling at $30,466. The SEC’s announcements caused BTC to briefly slide below the $30,000 mark from its Friday high of $31,291 before stabilising.