Following this resolution announced by the SEC, the application of Bitcoin ETFs introduced by fidelity is officially cancelled, similar to what happened with VanEck, WisdomTree and SkyBridge Capital.
The US Securities and Exchange Commission (SEC), main regulatory body for trading activities in the main stock markets, officially rejected the request made by Fidelity for the creation of an exchange-traded fund (ETFs) based on Bitcoin.
SEQ reject request for Bitcoin ETFs from fidelity
This was revealed by the SEQ in a statement posted today on its website, in which it rejected a proposed change by CBOE BZX Exchange to list and trade shares of Wise Origin Bitcoin Trust from Fidelity. Faced with this, the regulator indicated that the suggested modifications did not address the concerns indicated by the agency, especially those related to the possibility of fraudulent practices and possible market manipulations, which would leave potential investors unprotected in the event of any eventuality.
Fidelity originally filed its official application in March of last year, and the verdict in relation to it was extended twice (July and November 2021). Finally, the organization presented its rejection of said request, something that some analysts already expected given that there were delays, as happened with the requests for VanEck Y WisdomTree, despite the fact that there were certain expectations due to the caliber and trajectory of Fidelity.
Regarding the rejection of the request, the SEQ clarified that the exchange BZX did not meet the requirements established in the Laws and Rules of Practice established by the regulatory body, with which he was able to demonstrate that his proposal met the requirements set out in the Stock Exchange and Securities Law.
The verdict reads:
“It is essential that an exchange that lists a derivative securities product enter into a shared surveillance agreement with the exchanges that trade the underlying assets so that the listed exchange has the ability to obtain the information necessary to detect, investigate and deter abuse. fraud and market manipulation… as well as violations of applicable federal securities laws and exchange rules.”
Futures BTC yes… but in Bitcoin no
As previously mentioned, despite the trajectory of fidelity there weren’t many expectations about whether his application for a ETFs based on Bitcoin was finally approved, precisely because of the perspective that has historically been maintained by the SEQ in relation to these types of products.
In October of last year, the SEC proceeded to approve the creation of the first ETFs f-basedfutures from Bitcoin, with which the US stock market opened a first approach for companies and investors interested in having some exposure to the market of the main cryptocurrency.
However, a ETFs based on futures Bitcoin It is not the same as an investment fund associated with the price of Bitcoin. Against the latter, the Securities and Exchange Commission It has always felt a certain rejection precisely because of the volatility seen in the price of the digital currency. The latter makes the regulator think that said market is easily manipulated, and that ultimately the most affected will end up being the investors, especially in times of greatest tension within the market.
Faced with this panorama, several analysts and aspirants have called for the SEQ so that it gives a fairer treatment to the ETFs based in Bitcoin. The most incisive criticism was made precisely by the team of greyscale, which sent a communication to the secretary of the regulatory body, Vanessa Countryman, expressing its rejection of the body’s refusal to approve this type of product, since in other latitudes such as Canada there is the possibility of being exposed to Bitcoin under this mechanism.
The race for the first Bitcoin ETFs keep going
Despite all the above and against all odds, the race for the first Bitcoin ETFs in the US it continues, only the number of applicants is getting smaller and smaller as time goes by.
At the time of publication, the requests for digital-galaxy of Mike Novogratz and that of ARK Invest by Cathi Wood.
Meanwhile, fidelity goes on to accompany on the bench of the rejected VanEck, WisdomTree and SkyBridge Capital, entities that have already received an official verdict from the SEC.
Angel Di Matteo version / DailyBitcoin
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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.