Constancy Investments refiled its utility for its spot Bitcoin exchange-traded fund (ETF), referred to as Sensible Origin Bitcoin Belief, on June 29.
Constancy first filed its utility in 2021, nevertheless it was rejected by the SEC in January 2022, together with different spot Bitcoin ETF functions. So far, no establishment that has filed a spot Bitcoin ETF utility has obtained approval.
Nonetheless, a wave of institutional curiosity seems to have been sparked by BlackRock‘s spot Bitcoin ETF. Constancy is the most recent to affix a spate of such re-applications sparked by BlackRock’s personal utility earlier in June.
As of June 29, there at the moment are 9 pending functions for a spot Bitcoin ETF submitted with the SEC. The opposite functions had been filed by Ark Make investments, 21Shares, Bitwise, WisdomTree, Invesco, Valkyrie, and VanEck.
All corporations’ functions — excluding BlackRock — have been denied by the SEC prior to now two years. BlackRock itself has an extended historical past of ETF approvals — with 575 ETFs accepted and just one ever rejected — which has made markets optimistic that this utility, too, can be accepted.
The SEC has maintained {that a} product with direct publicity to Bitcoin is unsafe for traders as a result of there usually are not adequate guardrails in place to forestall market manipulation. Nonetheless, in keeping with Evolve ETFs’ chief funding officer, Elliot Johnson, the important thing differentiating think about BlackRock’s utility is a surveillance settlement that enables for its buying and selling exercise to be monitored by NASDAQ. This degree of surveillance, Johnson claimed, 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 ETF based mostly on Bitcoin futures. Nonetheless, because the case has but to conclude, it’s unclear whether or not it is going to have an effect on the present stance towards a spot ETF.
The publish Constancy reapplies for spot Bitcoin ETF regardless of 2022 rejection appeared first on CryptoSlate.