SEC Deems BlackRock and Fidelity Bitcoin ETF Applications Inadequate

The U.S. Securities and Exchange Commission (SEC) has deemed the recent wave of spot Bitcoin exchange-traded fund (ETF) applications, including those from BlackRock and Fidelity, as inadequate due to a lack of clarity regarding surveillance-sharing agreements. The SEC has consistently expressed concerns about the potential for market manipulation in the cryptocurrency space. While a spot Bitcoin ETF has yet to be approved in the U.S., the SEC recently gave the green light to the first leveraged Bitcoin futures ETF. Investors are eager for a Bitcoin ETF as it would provide easier access to the cryptocurrency without the need for custody.