The SEC Says No to Fidelity’s Bitcoin Spot ETF
In a classic case of regulatory denial, the United States Securities and Exchange Commission (SEC) has disapproved Fidelity’s Wise Origin Bitcoin Trust spot exchange-traded fund (ETF) application. Who knew that saying ‘no’ could become a trending hobby for federal agencies?
The Reason Behind the Rejection
According to a filing released on Thursday, the SEC rejected a proposed rule change from the Cboe BZX Exchange to list and trade shares of the beleaguered Bitcoin Trust. The regulatory body claimed that approving the ETF wouldn’t adequately protect investors or the public interest. It appears they weren’t convinced that the proposed measures could struggle against “fraudulent and manipulative acts and practices.” In layman’s terms, they just weren’t buying it.
History of Deliberation
The saga of Fidelity’s ETF has turned into an epic tale stretching from March 2021 to present. After a seemingly never-ending series of deliberations, the SEC extended its decision-making window multiple times, rejecting the application while giving investors hope. At this point, one might wonder if they should add ‘Fidelity ETF soap opera’ to their binge-watch list.
Crucial Points from the Ruling
- Compliance: The SEC emphasized that the BZX exchange failed to demonstrate that its proposal aligned with the requirements of the Exchange Act.
- Surveillance Agreements: For derivative securities products to be approved, an exchange must have a surveillance-sharing agreement with markets trading the underlying assets to monitor fraud and manipulation.
- Protecting the Public Interest: Ultimately, the SEC underscored that investor safety remains their top priority.
Reactions from Key Players
Reactions to the ruling were swift, with industry figures expressing their frustrations. Tom Emmer, a U.S. Representative, tweeted, “Another day, another baseless rejection of a Bitcoin spot ETF.” At least someone is keeping the spirits high amidst the disapproval gloom!
On a more corporate note, Claire Putzeys, Fidelity’s communications director, conveyed disappointment but reaffirmed the firm’s belief in market readiness for a physical Bitcoin ETF. Fingers crossed for a less bureaucratic future in crypto investments!
Looking Ahead
As the SEC continues to dither on the subject of Bitcoin ETFs, many analysts are betting that similar applications will face the same fate for the foreseeable future. Meanwhile, the regulatory body is expected to make decisions on NYDIG’s spot Bitcoin ETF and Stone Ridge Holdings Group’s BTC ETF by mid-March. The crypto community can only wait and hope for a breath of fresh ETF approval air!
Conclusion: The Waiting Game Continues
The quest for a Bitcoin spot ETF hasn’t turned out as many had hoped, as the SEC remains apprehensive about giving the green light. For now, investors looking for Bitcoin exposure through ETFs might have to content themselves with derivative-linked funds. A hasty conclusion? Perhaps, but in the world of finance, patience can often be a virtue.
