Bitcoin’s value experienced a decline below the $30,000 threshold as the Securities and Exchange Commission (SEC) reportedly signals its intention to block spot Bitcoin exchange-traded funds (ETFs).
According to a recent report by the Wall Street Journal, the SEC has deemed the applications for spot Bitcoin ETFs as inadequate due to insufficient clarity and comprehensiveness. T
his development follows a surge in applications from various asset managers aiming to gain wider market access to cryptocurrency.
The SEC has expressed concerns about the lack of clarity and comprehensiveness in recent applications for spot Bitcoin ETFs filed by Nasdaq and Cboe Global Markets on behalf of asset managers like BlackRock and Fidelity Investments.
Several other prominent asset managers, including Fidelity Investments, Ark Investment Management, Invesco, WisdomTree, Bitwise Asset Management, and Valkyrie, have either reactivated or amended their applications for spot Bitcoin ETFs.
Since 2017, the SEC has consistently rejected such ETFs due to worries about potential fraud and market manipulation.
In response to the SEC’s feedback, the exchanges have been requested to revise the language in their applications and resubmit them.
Cboe has confirmed its intent to comply with the request, while Nasdaq and the asset managers mentioned in the report refrained from commenting.
