The U.S. Securities and Exchange Commission (SEC) has informed Nasdaq and CBOE that recent filings to launch a spot bitcoin ETF are inadequate, according to sources close to the matter. The news sent the price of bitcoin (BTC) plunging by $1,000, or more than 3%, in the space of a few minutes. At press time, bitcoin was trading just above $30,000.
The SEC reportedly has concerns over the lack of detail in the filings with respect to the surveillance-sharing agreements, including which spot bitcoin exchange would be used. The asset managers can update their applications and refile, and the CBOE indicated to the WSJ that it plans to do so.
The SEC’s previous rejections of all spot bitcoin ETF filings were due to concerns over spot price manipulation. The surveillance-sharing agreements in this new round of applications were meant to address those fears.
BlackRock’s spot ETF filing in mid-June had been the impetus for a strong run higher in the price of bitcoin since, sending the crypto from below $26,000 to one-year highs above $31,000. The BlackRock application also set off a host of filings from several other asset managers, including fellow asset management giants Invesco (IVZ) and Fidelity, both of which refiled for approval of their previously rejected spot bitcoin ETFs.
An SEC spokesperson told journalists, We would decline to comment on the possibility of individual filings. BlackRock, Fidelity, and Invesco spokespeople all declined to comment to journalists.