Bitcoin’s value has dipped below the critical $30,000 mark following indications from the Securities and Exchange Commission (SEC) about a potential block on spot Bitcoin exchange-traded funds (ETFs).
The Wall Street Journal (WSJ) has reported that the SEC considers recent applications for spot Bitcoin ETFs filed by Nasdaq and Cboe Global Markets, representing asset managers like BlackRock and Fidelity Investments, as inadequate due to lacking clarity and comprehensiveness.
This development has led to a surge of renewed applications by other asset managers, eager to gain broader market access to the cryptocurrency.
The SEC has recently evaluated applications for spot Bitcoin ETFs, which have been submitted by prominent exchanges and asset managers, including Nasdaq and Cboe Global Markets on behalf of BlackRock and Fidelity Investments.
However, the SEC has expressed concerns over the insufficient clarity and comprehensiveness in these applications, resulting in a potential block on the proposed ETFs.
Several other asset managers, including Fidelity Investments, Ark Investment Management, Invesco, WisdomTree, Bitwise Asset Management, and Valkyrie, have also reactivated or amended their applications for spot Bitcoin ETFs.
However, the SEC’s consistent rejections of similar funds since 2017 have been driven by worries about vulnerability to fraud and market manipulation in the cryptocurrency space.
In light of the SEC’s feedback, the exchanges have been informed to revise the language in their applications and refile.
A Cboe spokeswoman has confirmed their intention to address the SEC’s concerns and resubmit their proposal for the spot Bitcoin ETF.
However, other key players such as Nasdaq, the SEC, and representatives from BlackRock, Fidelity, Invesco, WisdomTree, and Ark Investment Management have chosen not to provide comments at this time.