BlackRock’s early rejection of its planned Spot Bitcoin ETF will not affect its ultimate success, according to a statement from Nasdaq executive Jiang Bui. September 13.
BlackRock filed an application for a Spot Bitcoin exchange-traded fund (ETF) on June 15th. While BlackRock filed a Form S-1 to register the product, Nasdaq was responsible for filing a Form 19-B4 proposing the rule changes necessary to list the product. .
On June 30, the U.S. Security and Exchange Commission (SEC) declared the latter application, along with others, to be improper and was rejected early. However, this decision has more to do with regulatory and procedural issues than with product content or potential viability.
However, these early rejections may not bode well for applicants. Jiang Bui, head of U.S. equities and ETPs at Nasdaq, told Forbes:
“After exchanging files, [19-b4], the SEC may reject it within seven business days if it determines that it does not comply with SEC rules regarding format. Rejection at that stage does not indicate the viability of the product and is purely procedural. ”
After initial rejections, Nasdaq and others filed updates on various ETF applications and explicitly listed Coinbase as a partner in oversight and sharing agreements. Bui acknowledged this, saying it was unusual to list partners in this way. But she said the late addition was due to Nasdaq trying to make its filing “as strong as possible.”
Other Spot Bitcoin ETFs are pending
BlackRock’s proposed Spot Bitcoin ETF is not the only application of this type. Nasdaq is simultaneously processing a similar proposal from Vacryly Investments. Meanwhile, another exchange, Cboe, handles offers from other asset managers such as Ark Invest, VanEck, WisdomTree, Invesco and Fidelity. NYSE Arca carries his ETF proposal from Bitwise. Many of these proposals are very similar and describe oversight sharing agreements with Coinbase.
Elsewhere, Grayscale aims to turn its existing GBTC fund into a spot Bitcoin ETF in a somewhat different way. Bui acknowledged Grayscale’s proposal and recent legal victory, saying Nasdaq “is still analyzing what that means.” [its] Documents to be submitted. ”
In late August, the SEC deferred decisions on most of the spot Bitcoin ETFs mentioned above. The SEC expects him to make a decision on the specific application in October.
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