The United States SEC has fined crypto exchange Coinme for allegedly making "misleading" claims about its native coin, UpToken.

SEC: Spot Bitcoin ETF Filings are Inadequate

  • Investors believe a spot Bitcoin ETF would enable them to invest in Bitcoin without having to worry about the custody of the asset.
  • An ETF is an investment tool that tracks the value of an underlying asset, such as Bitcoin or gold.
  • The SEC has been reluctant to approve a spot Bitcoin ETF since 2017.

The Wall Street Journal reported on Friday June 30 that the U.S. Securities and Exchange Commission has declared that the increasing number of spot Bitcoin exchange-traded funds (ETFs) applications submitted this month are inadequate. The SEC allegedly claims that the applications lack clarity.

Citing an anonymous source, the report claims that the SEC believes that the Bitcoin ETF applicants have failed to clarify how they will handle a “surveillance-sharing agreement.” This agreement provides safety measures and ensures that the fund issuer monitors customer identity, clearing activities, and market trading activity to prevent fraud and manipulation. The SEC noted that all Bitcoin ETF applications submitted to date have failed in this area.

BlackRock recently joined the list of businesses vying to launch the first Bitcoin ETF on Wall Street. Since then, other companies have followed suit. Interestingly, Bitcoin’s price increased as a result of BlackRock’s application. 

ETFs are commonly traded on exchanges and track a certain index. A cryptocurrency ETF is a fund that invests in several cryptocurrencies and monitors the price of one or more digital tokens in the crypto market. 

The US has yet to have a spot Bitcoin ETF because the SEC has strongly opposed it since 2017. The SEC expressed concerns about the price of Bitcoin being open to manipulation. However, despite the sentiments among US regulators, Canada currently offers spot Bitcoin ETFs.

Today’s news plunged the price of Bitcoin (BTC) by $1,000 within a few minutes. As of this writing, bitcoin traded around the $30,000 mark.

Lawrence Woriji Verified

Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.

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