Hopes for a bitcoin ETF have spurred the bitcoin rally to $31000 from $25000 but they hit a speedbump today with a breaking WSJ report that the SEC rejected the applications.
All is not lost though as the story indicates they can re-file to address surveillance issues.
"Some industry watchers predicted that BlackRock’s filing would appease the SEC’s concerns through an agreement to share “surveillance” of a spot bitcoin-trading platform with Nasdaq, which would list the ETF.
Yet the SEC told the exchanges that it returned the filings because they didn’t name the spot bitcoin exchange with which they are expected to have a “surveillance-sharing agreement” or provide enough information about the details of those surveillance arrangements. Asset managers can update the language and refile."
Bitcoin prices fell nearly $1000 on the headlines but have steadied.
What's worrisome for the bulls here is that the idea, or the hope, is that the SEC has tapped Blackrock on the shoulder and gave it an indication of how to get approval. Perhaps that's still the case but if their application is deficient, then maybe that's not the case.
