However, the applications by BlackRock and others can be updated and refiled.

Bitcoin experienced a sudden drop in price, falling below $30,000, after the U.S. Securities and Exchange Commission (SEC) deemed the ETF filings submitted by Nasdaq and Cboe on behalf of asset managers like BlackRock (NYSE: BLK) “inadequate.” The SEC stated that the filings lacked specific details, particularly concerning surveillance-sharing agreements and the Bitcoin spot exchanges the asset managers intended to partner with.

The market regulatory agency did, however, suggest that the exchanges could update and resubmit their applications, which Bloomberg ETF analyst Eric Balchunas considered potentially positive news. (Fortune)

This decline in Bitcoin’s price follows a recent rally that saw the cryptocurrency reach its highest level in over a year. BlackRock, the largest asset manager in the United States, had filed an application for a Bitcoin spot ETF in mid-June. Despite various attempts, no asset manager has yet received SEC approval for such an ETF, which would allow exposure of Bitcoin to trillions of dollars from brokerage accounts and pension funds. However, the SEC did approve a Bitcoin futures ETF.

BlackRock’s filing sparked optimism in the crypto market, as it was hoped that the company’s reputation and the inclusion of a surveillance-sharing agreement with Nasdaq would address the SEC’s concerns about market manipulation.

In response to the BlackRock filing, other prominent asset managers including WisdomTree, Invesco, Bitwise, ARK Invest, and Fidelity followed suit by either revising or submitting their ETF applications, incorporating their own surveillance-sharing agreements.

During the second half of June, Bitcoin maintained a trading price above $30,000, indicating a significant surge of almost 100% in value since the start of the year.

While the SEC’s comments caused a temporary setback, there is still potential for the ETF filings to be updated and resubmitted, which may ultimately impact Bitcoin’s price and the broader cryptocurrency market.

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Image by Gerd Altmann from Pixabay