Investment firm BlackRock is questioning the Securities and Exchange Commission (SEC) by arguing that spot Bitcoin and Ethereum exchange-traded funds (ETFs) are not different from futures ETFs. BlackRock believes that the SEC is misusing the Investment Company Act of 1940 by applying it to spot ETFs. The firm states that the added investor protections in the 1940 Act do not address the potential for fraud or manipulation in the underlying assets and markets of ETFs. BlackRock concludes that the SEC’s distinction between futures ETFs and spot market ETFs is arbitrary and without a difference in the context of ETH-based ETP proposals.
AI Sentiment: Neutral