SEC Seeks Public Opinion Ahead of Groundbreaking Decision on Spot Bitcoin ETFs

The US Securities and Exchange Commission (SEC) has sought public opinion about spot Bitcoin exchange-traded fund (ETF) applications recently filed by asset management companies. The submission of the applications for public opinion marks the initial step for processing the filings.

Last week, the SEC asked the public to submit their opinion concerning the applications made through the market operator, Cboe Global Markets. The spot Bitcoin ETF applications were made on behalf of WisdomTree, VanEck, Invesco Galaxy, Wise Origin, and a joint application between Ark Invest and 21Shares.

SEC Acknowledges BlackRock’s Application

In a separate document, the regulator asked for feedback for the application submitted by Nasdaq on behalf of BlackRock, the world’s largest asset management company. BlackRock sought the regulator’s approval for a spot Bitcoin ETF in June, Finance Magnates Reported.

In the application, the company noted that the fund will be named iShares Bitcoin Trust and will use the custodian services offered by Coinbase. Additionally, BlackRock is planning to use CME CF Bitcoin Reference Rate (BRR) to track the price of Bitcoin. BRR is a daily reference rate of the price of Bitcoin in US dollars.

However, according to the documents published by the SEC, the applications must be filed in the federal register before the final decision is made. Once the applications are filed in the register, the SEC has between 45 and 90 days to make a decision.

Cboe Files Fresh Applications

A week ago, Cboe filed amended applications to list spot Bitcoin ETFs on behalf of Fidelity, WisdomTree, VanECK, and Invesco, after entering into a surveillance-sharing agreement (SSA) with Coinbase.

The agreement, which the market operator said will be implemented before the ETFs are listed, is part of the recommendations set by the SEC. An SSA is an agreement entered into by the company listing a spot Bitcoin ETF and a spot exchange. In the agreement, the exchange is required to share any information about suspicious activities in the market with the regulator.

In the past, the SEC has rejected applications for spot Bitcoin ETFs on the basis that the proposals do not meet the standards to prevent fraud and market manipulation. In 2021, the authority rejected an application by VanEck on the same basis.