The US Securities and Exchange Commission is pushing back against a wave of filings by asset managers to launch the first US exchange-traded fund that invests directly in Bitcoin, saying the applications lack clarity and further information is needed before they’re considered for approval.
The agency told exchanges including Nasdaq and Cboe Global Markets, which filed the applications on behalf of BlackRock and Fidelity Investments, that their filings are insufficient, according to people familiar with the matter. A Cboe spokesperson confirmed that it will refile on the behalf of Fidelity. Nasdaq is working to answer questions and give updates for its next iteration of the filing.
Representatives for the SEC, Fidelity, Nasdaq and BlackRock declined to comment. The Wall Street Journal first reported the SEC reaction to the filings.
Both Nasdaq and Cboe are working on providing new information in the hopes they meet the SEC’s threshold for approval, according to the people who asked not to be named publicly. They plan to revise and re-file their applications based on feedback and talks with the regulators, the people said.
The SEC would take public comment on the amended application before making any final decision, the people said. Eventually, the agency will give a firm yes or no for approval, depending on their comfort level with revised applications, they said.
--With assistance from Katie Greifeld.
This article was provided by Bloomberg News.