After the SEC found the Bitcoin ETF applications to be insufficient, corporates are renewing the applications, highlighting Coinbase.
The crypto market, which was stimulated by BlackRock's spot Bitcoin ETF application, was hit recently. The SEC announced that it reviewed institutional applications for Bitcoin ETF and found them inadequate.
However, institutionalists do not plan to give up their applications for Bitcoin ETF. ETF applications, which the SEC found inadequate due to the lack of market observers, are being renewed with the addition of Coinbase as the supervisor.
Institutions Insist on Bitcoin ETF Applications
Institutions managing billions of dollars of assets began to turn to Bitcoin with ETF applications. While BlackRock chose Nasdaq for its spot Bitcoin ETF application, institutions such as Fidelity and WisdomTree preferred Cboe.
Bitcoin ETF applications made through Cboe and Nasdaq were not approved by the SEC. The SEC announced that there was a lack of oversight-sharing in the applications made through these two intermediaries.
The other day, Cboe renewed its spot Bitcoin ETF applications and added Coinbase to the custody-sharing agreement. According to this renewed filing, Coinbase will play an active role as custodian of spot Bitcoin ETFs.
Cboe, which renewed the applications, stated that Coinbase is based in the USA and has an important position in Bitcoin trading in US dollars. Cboe adds US exchange to renewed filings as active custody-sharing partner.
Additionally, the SEC will have to begin reviewing the applications. Although this review period is 45 days, the SEC has the right to extend it up to 240 days.