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- ✨Bitcoin Spot ETF Updates📈
✨Bitcoin Spot ETF Updates📈
After a slight tumble, more progress is made on the applications.
Branson Tiong
July 01, 2023
Here is the outline for today’s newsletter🔥
Bitcoin Price Tumbles of SEC stating Bitcoin ETF filings “Inadequate”😮
Coinbase to Partner with Fidelity and Other Bitcoin ETFs as Surveillance Partner🤝
Hong Kong Is 'Embracing' Web3 With New Task Force👮♂️
Bitcoin Price Tumbles of SEC stating Bitcoin ETF filings “Inadequate”😮
The price of Bitcoin (BTC) experienced a significant drop following reports of the U.S. Securities and Exchange Commission (SEC) stating that the spot Bitcoin exchange-traded fund (ETF) filings are inadequate.
A dip below $30k
According to the Wall Street Journal, the SEC has notified Nasdaq and CBOE, the exchanges responsible for filing the spot ETF paperwork on behalf of asset managers such as BlackRock and Fidelity, that the applications lack clarity and comprehensive information.
This development caused the price of Bitcoin to plummet by over 3% or $1,000 within minutes, bringing it down to just above $30,000 at the time of writing.
The primary concern raised by the SEC is the insufficient detail regarding "surveillance-sharing agreements" in the filings, specifically the identification of the spot Bitcoin exchange to be utilized.
However, the asset managers have the opportunity to update their applications and resubmit them. The CBOE has already indicated its intention to do so, according to statements provided to the WSJ and CoinDesk.
Spot ETF Filings for Bitcoin
One of the driving forces behind Bitcoin's recent surge over the past two weeks was the spot ETF filings from BlackRock and Fidelity in mid-June. This news propelled Bitcoin's price from below $26,000 to surpass one-year highs above $31,000.
Notably, these filings also triggered a wave of applications from other asset managers, including Invesco and Fidelity, who sought approval for their previously rejected spot Bitcoin ETFs.
It's worth mentioning that the SEC has previously stated that a bitcoin trust sponsor must establish a surveillance-sharing agreement with a regulated market of significant size.
Such an agreement would allow the sponsor and the trading platform to identify any potential market manipulators, ensuring a level playing field.
At present, there is no federal regulator overseeing spot Bitcoin markets, a situation the Commodity Futures Trading Commission has been advocating to change for years.
The SEC spokesperson declined to comment on the possibility of individual filings, highlighting the ongoing nature of the regulatory review process.
As we go down below, there is a recent update news regarding this topic 👇
The important take from here is that: The markets overreacted to the headlines posted on the news thinking that spot ETF’s were rejected.
Whilst reading through the news, it is stated that these firms have the opportunity to update their filings to cater to what the SEC needs.
Coinbase to Partner with Fidelity and Other Bitcoin ETFs as Surveillance Partner🤝
Coinbase has been named as the surveillance partner for several Bitcoin ETF applications, including those from:
FIdelity
WisdomTree
VanEck
ArkInvest
Galaxy/Investco
BlackRock
This partnership comes as a result of Cboe's BZX Exchange refiling its spot Bitcoin ETF applications. The applications had previously faced rejection from the U.S. Securities and Exchange Commission (SEC), largely due to the lack of surveillance-sharing agreements with markets of significant size.
Fidelity has also updated their filings stating Coinbase as the surveillance partner🥳
In response to the SEC's requirement to name the market partner, Cboe identified Coinbase as the market for its surveillance-sharing agreement.
The filing highlighted that Coinbase's platform represents a substantial portion of U.S.-based and USD-denominated Bitcoin trading.
The agreement, known as the Spot BTC SSA (surveillance-sharing agreement), aims to enhance the exchange's surveillance program for Commodity-Based Trust Shares.
The SEC has emphasized the importance of surveillance-sharing agreements to prevent market manipulation and protect consumers. These agreements provide exchanges with access to data regarding spot Bitcoin trades, allowing them to monitor and ensure the integrity of the market.
The lack of such agreements has been a significant factor in the SEC's previous rejections of Bitcoin ETF applications.
It's worth noting that Coinbase's recent legal dispute with the SEC, involving allegations of operating an unregistered securities exchange, broker, and clearinghouse, could complicate the SEC's assessment of the exchange's suitability as a significant and regulated market for Bitcoin.
Seem like a start of the bullish run for Bitcoin 📈
Hong Kong Is 'Embracing' Web3 With New Task Force👮♂️
Authorities in Hong Kong have recently announced the creation of a task force dedicated to promoting the development of Web3.
Led by the territory's pro-crypto financial secretary, Paul Chan, the task force comprises government officials, regulators, and industry experts, with a two-year period to carry out their work.
Paul Chan
This move comes as Hong Kong recognizes the immense potential and "golden opportunity" presented by Web3 development, as stated by Paul Chan himself.
Hong Kong has been actively striving to position itself as a leader in the Web3 space. Earlier this year, the territory introduced an official policy statement on Virtual Assets, which received a positive response from the markets.
The policy statement, coupled with the launch of the Virtual Asset Trading Platform (VATP) handbook, demonstrates Hong Kong's determination to become a thriving ecosystem for Web3 companies.
Hong Kong, as an international financial center and a metropolis emphasizing innovation and technology, is well-positioned to foster the development of Web3.
Despite its proximity to China, which has been cautious about digital asset initiatives, Hong Kong has been relentless in its pursuit of becoming a crypto hub. By drawing in top-notch talent and leveraging the insights of the task force, Hong Kong aims to establish itself as a vibrant Web3 hub.
While the US is still fighting over regulatory clarity, Asia seems to be moving in the right direction for Web3 with countries like Dubai and Singapore taking charge.
✨Bonus News✨
Disclaimer: This is not any kind of financial advise. This newsletter is solely informational; it does not constitute investment advice, a solicitation to buy or sell any securities, or a recommendation regarding how to manage your money. Be cautious and conduct your own study, please.
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