a year ago
Bitcoin Dumps Below $30K as SEC Warns That Recent BTC Spot ETF Filings Are ‘Inadequate’ (WSJ)
Shortly after the news broke, BTC dropped to a 10-day low under $30,000.
The US Securities and Exchange Commission has reportedly issued a warning that the recent Bitcoin Spot ETF filings by financial giants, such as Fidelity and BlackRock, could lack comprehensive details.
The agency has a long history of rejecting such products in the States, and its current war on crypto is likely not helping.
BlackRock made the headlines a few weeks ago when it filed to launch a Bitcoin Spot ETF in the States, which, if approved, would be the first such product in the country.
The company’s record is quite spectacular, with only one proposed ETF rejected by the SEC almost a decade ago.
The move was regarded as a hugely positive development for the industry that could open the doors for others as well, and Fidelity reapplied shortly after.
However, a new report by the Wall Street Journal, citing people familiar with the matter, claims that the US securities regulator is not keen on approving either of these applications.
According to the WSJ, the SEC has informed Nasdaq and CBOE that the applications filed on behalf of BlackRock and Fidelity are not “sufficiently clear and comprehensive.”
Given that the agency has used that justification in the past to reject multiple Bitcoin Spot ETF applications, the news was followed by a sharp price drop from BTC.
The cryptocurrency flirted with the $31,000 level today, but it plummeted by over a grand within an hour after the report came out to a 10-day low of under $30,000.