COIN - SEC reportedly says spot bitcoin ETF filings are inadequate; top crypto dips 1%

2023-06-30 11:01:25 ET

The Securities and Exchange Commission said recent applications by top asset managers for spot bitcoin ( BTC-USD ) exchange traded funds are inadequate, the Wall Street Journal reported, briefly sending  the top cryptocurrency below $30K.

Bitcoin ( BTC-USD ), which was in the green during Asian trading hours, fell 1% to $30.1K at 10.57 am ET. Ether ( ETH-USD ) edged down 1% to $1.8K.

The regulator is said to have informed Nasdaq ( NDAQ ) and Cboe ( CBOE ), both of which applied for the ETFs on behalf of asset managers including BlackRock ( BLK ) and Fidelity Investments , that their respective filings were not sufficiently clear and comprehensive.

Cboe ( CBOE ) plans to update and refile its application, the report said, while the other companies declined to comment.

"Spot ETF filings for bitcoin are 'inadequate' but a 2x leveraged futures ETF isn't? Seems really weird, to say the least," popular crypto trader Michaël van de Poppe tweeted , before saying that market was overreacting .

The development deals a blow to crypto markets, which rallied in the wake of BlackRock's ( BLK ) ETF filing. At the time, bitcoin ( BTC-USD ) climbed past $30,000 for the first time since April.

Wall Street titans BlackRock ( BLK ), Invesco ( IVZ ) and WisdomTree ( WT ) have all filed applications for a spot bitcoin ETF. Cathie Wood's Ark Investment Management , Bitwise Asset Management and Valkyrie also made similar moves.

The news sent Grayscale Bitcoin Trust ( OTC:GBTC ) down 3.2% , while Coinbase ( COIN ) - custodian for the BlackRock ( BLK ) ETF's BTC holdings - slid 1.6% in morning trade.

More on bitcoin ETFs

• BlackRock's ETF Filing Could Be Good For GBTC
• Crypto ETFs Back In The Spotlight
• Bitcoin: Guess Who's Back
• Bitcoin's Dubious Rally

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