Constancy Investments resubmitted its software for its spot Bitcoin exchange-traded fund (ETF), referred to as Smart Origin Bitcoin Belief, on June 29.
Constancy filed its first software in 2021, however it was rejected by the SEC in January 2022, together with different Bitcoin ETF spot purposes. To this point, no establishment that has utilized for a spot Bitcoin ETF has obtained approval.
Nevertheless, a flurry of institutional curiosity appears to have been sparked by BlackRock’s Bitcoin ETF spot. Constancy is the newest to hitch a collection of such calls for triggered by BlackRock’s personal app earlier in June.
As of June 29, there have been now 9 pending purposes for a spot Bitcoin ETF submitted to the SEC. The opposite purposes had been filed by Ark Make investments, 21Shares, Bitwise, WisdomTree, Invesco, Valkyrie and VanEck.
The entire firms’ requests – aside from BlackRock – have been denied by the SEC previously two years. BlackRock itself has an extended historical past of ETF approvals – with 575 ETFs authorised and just one ever rejected – which has made markets optimistic that this request shall be authorised as properly.
The SEC argued {that a} product with direct publicity to Bitcoin is unsafe for buyers as a result of there are inadequate safeguards in place to forestall market manipulation. Nevertheless, in keeping with Evolve ETFs chief funding officer Elliot Johnson, the primary differentiator in BlackRock’s bid is a supervisory settlement that enables its buying and selling exercise to be monitored by NASDAQ. This stage of oversight, in keeping with Johnson, is what can successfully forestall such manipulation.
Courts have questioned the watchdog’s reasoning within the Grayscale vs. SEC case and referred to as its logic flawed as a result of it permits ETFs primarily based on Bitcoin futures. Nevertheless, because the deal just isn’t but closed, it’s not clear if this can impression the present place in the direction of a money ETF.
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