On Friday afternoon, Fidelity Investments took the lead in a flurry of recent activity when they, along with a few other companies, resubmitted their applications for a Bitcoin spot exchange-traded fund (ETF).The US Securities and Exchange Commission (SEC) had previously stated that the first submissions lacked sufficient details, which led to this.Along with three other companies, Invesco, VanEck, 21Shares, and WisdomTree participated in this action in an effort to lead the development of US spot Bitcoin ETFs.This chain of events was started by BlackRock Inc. in mid-June with an unexpected file for such a fund.
Each company that resubmitted on Friday noted that Coinbase Global Inc. will support market surveillance for their assets.Their earlier submissions did not provide this crucial information.A spot Bitcoin ETF’s SEC clearance may depend on how well the crypto market is being regulated.Such monitoring could greatly reduce fraud and market manipulation, problems that have so far resulted in the SEC rejecting around 30 applications for Bitcoin spot ETFs.
According to an insider who requested anonymity because they were not authorized to publicly reveal this information, Coinbase is also expected to provide a variety of services for other potential fund issuers.These companies, in addition to BlackRock, also include Valkyrie and Bitwise.In a recent filing, 21Shares claimed that Coinbase will also offer custody services.The other issuers declined to confirm Coinbase’s involvement.
The surge in applications has improved token prices, which is a favorable development for those who are interested in cryptocurrencies.Excitement has been generated by the idea of cryptocurrencies being more accessible to average investors.The price of bitcoin reached its best trading levels since last year in June, when it regained a value over $30,000.The token’s price as of Friday was around $30,400, which is still less than half of the record high it reached in November 2021 of almost $69,000.However, these rule filings won’t become effective until they receive approval from the SEC.
An increase in revenue from Coinbase’s collaboration with the planned ETFs is possible, especially given the current volume challenges facing the bitcoin exchange sector.The revenue generated by Coinbase was less than half of what it was in 2021, a year in which the sector saw a bull market.This information comes while Coinbase is still embroiled in a legal battle with the SEC on allegations that it ran an illicit exchange.
Following BlackRock’s ETF filing in mid-June, the market’s confidence prompted seven additional businesses to submit or resubmit requests for spot ETFs in anticipation of a change in the SEC’s long-standing opposition to such funds.The fact that the SEC approved ETFs tied to Bitcoin futures in 2021 suggests a potential change of heart.