Exchange operator Cboe has resubmitted an application with the U.S. Securities and Exchange Commission (SEC) to launch a bitcoin exchange-traded fund (ETF) in collaboration with asset manager Fidelity.
Cboe aims to address concerns raised by the SEC regarding the clarity and completeness of its initial filing. The SEC had previously raised similar concerns with Nasdaq over a spot bitcoin ETF filing by BlackRock.
One of the key issues was the failure to disclose the crypto-trading platforms that would enter into surveillance-sharing agreements to detect fraud in the bitcoin markets.
In addition to the Fidelity ETF, Cboe has also resubmitted listing applications for bitcoin ETFs by WisdomTree, VanEck, and a joint effort by Invesco and Galaxy.
Cboe intends to enter into a surveillance-sharing agreement with Coinbase for all these filings.
The SEC, Cboe, Nasdaq, Fidelity, and BlackRock declined to comment on the matter, while Coinbase was unavailable for comment.
It is worth noting that the SEC recently filed a lawsuit against Coinbase for failing to register as an exchange. According to Cboe’s Fidelity bitcoin ETF filing,
Coinbase represented roughly half of the U.S. dollar-bitcoin trading volume in May.
Coinbase has responded by filing a letter in federal court, seeking the dismissal of the SEC lawsuit, arguing that the regulator lacks authority to pursue civil claims since the crypto assets traded on its platform are not considered securities.
In addition to the Coinbase lawsuit, the SEC is also suing Binance, alleging that the world’s largest crypto-trading platform is involved in deceptive practices.
Concerns have been raised about the lack of transparency and auditability in the cryptocurrency market, with claims of rampant manipulation.
The recent filings for bitcoin ETFs by BlackRock and Fidelity have led to a surge in the price of bitcoin, reaching one-year highs and rising over 20% since June 15.
Despite the SEC’s request for more information on the ETF applications, the fact that the price of bitcoin has remained stable suggests that sentiment in the market is not turning bearish.
Analysts believe it was unrealistic to expect quick approval from the SEC, as the agency has previously rejected numerous spot bitcoin ETF applications due to concerns about fraudulent practices and investor protection.
Overall, Cboe’s renewed applications for bitcoin ETFs, along with similar filings by other firms, reflect the growing interest in providing regulated investment vehicles for cryptocurrencies.
However, the approval process still faces regulatory hurdles and the need to address concerns related to market manipulation and investor protection.
Other Stories:
Crypto ATM Company To Go Public After Announcing Merger
Crypto Investor Reports Huge Bitcoin (BTC) Gains With Questionable Strategy
