The US securities regulator, the SEC, has announced that it has found applications for spot Bitcoin ETFs unsatisfactory.
Bitcoin slumped as much as 5 percent on Friday after the Securities and Exchange Commission said recent ETF filings from BlackRock and Fidelity were unsatisfactory. Bitcoin, which was above $ 31 thousand, went down to $ 29 thousand 500.
BlackRock, Fidelity, WisdomTree and other traditional asset managers have filed with the SEC to launch a spot bitcoin ETF, sparking hope among investors that an approval may finally be imminent.
But Friday’s report suggested that even after the regulatory agency approved the 2x leveraged bitcoin futures ETF, approval of the spot Bitcoin ETF still faces some hurdles.
The SEC told the CBOE and Nasdaq, which filed bitcoin ETF applications on behalf of BlackRock and Fidelity, that they were not “clear and comprehensive”, according to the report, citing people familiar with the matter.
After BlackRock’s application for a Bitcoin ETF, a sharp rise was recorded in the crypto market. Bitcoin had climbed from $ 26 thousand 400 to over $ 31 thousand. Bitcoin had risen above $30,000 for the first time since April. Shares of Coinbase, listed as the asset custodian of the BlackRock fund, also rose more than 30 percent during the same period.