Constancy reapplies for spot Bitcoin ETF regardless of 2022 rejection

Constancy Investments refiled its software for its spot Bitcoin exchange-traded fund (ETF), referred to as Sensible Origin Bitcoin Belief, on June 29.

Constancy first filed its software 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 software has acquired approval.

Nevertheless, a wave of institutional curiosity seems to have been sparked by BlackRock‘s spot Bitcoin ETF. Constancy is the most recent to hitch a spate of such re-applications sparked by BlackRock’s personal software earlier in June.

As of June 29, there are actually 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 up to now two years. BlackRock itself has a protracted historical past of ETF approvals — with 575 ETFs accepted and just one ever rejected — which has made markets optimistic that this software, too, will probably be accepted.

The SEC has maintained {that a} product with direct publicity to Bitcoin is unsafe for traders as a result of there will not be ample guardrails in place to stop market manipulation. Nevertheless, based on Evolve ETFs’ chief funding officer, Elliot Johnson, the important thing differentiating think about BlackRock’s software is a surveillance settlement that permits for its buying and selling exercise to be monitored by NASDAQ. This degree of surveillance, Johnson claimed, is what can successfully stop 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 primarily based on Bitcoin futures. Nevertheless, because the case has but to conclude, it’s unclear whether or not it’s going to have an effect on the present stance towards a spot ETF.

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