Bitcoin Falls Below $30,000 amid SEC’s Criticism of BlackRock and Other Companies’ ETF Filings as ‘Insufficient’

The price of Bitcoin, the world’s largest cryptocurrency, dropped from above $31,000 to briefly below $30,000 on Friday morning, representing a 3% decrease in just minutes. This sudden dip came after a report from the Wall Street Journal revealed that the US Securities and Exchange Commission (SEC) had deemed the applications for a Bitcoin spot exchange-traded fund (ETF) submitted by exchanges Nasdaq and Cboe as “inadequate.” The SEC stated that the filings lacked specific details regarding surveillance-sharing agreements, which are important in preventing market manipulation, and failed to name the Bitcoin spot exchanges that asset managers planned to partner with. However, there is still hope for these ETF applications, as the SEC noted that the exchanges can update their applications and resubmit them. Bloomberg ETF analyst Eric Balchunas pointed out that this could be considered good news.

Bitcoin’s price drop follows a period of rally, during which the cryptocurrency reached its highest price in over a year. The rally was prompted by a wave of ETF applications from major institutions such as BlackRock, which filed an application in mid-June. Although no asset manager has yet received SEC approval for a Bitcoin spot ETF, the market reacted positively to BlackRock’s filing, with hopes that the company’s stature would aid in gaining approval. Other large asset managers, including WisdomTree, Invesco, Bitwise, ARK Invest, and Fidelity, followed suit and either resubmitted or updated their existing ETF applications.

Throughout the latter half of June, Bitcoin consistently traded above $30,000, marking a nearly 100% increase in price since January. The approval of a Bitcoin spot ETF would open the door for trillions of dollars from brokerage accounts and pension funds to flow into the cryptocurrency market. However, the SEC has repeatedly cited concerns over market manipulation as a reason for denying previous Bitcoin spot ETF applications. Despite this setback, there is hope that the exchanges can address the SEC’s concerns and eventually garner approval for their ETF applications. So far, the market remains optimistic about the future of Bitcoin.

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About The Author

Niels I have been passionate about dogecoin since 2019, and have since become an avid follower and advocate of the cryptocurrency. I keep a close eye on the Dogecoin market and trends, and I'm always up-to-date with the latest news and developments. As a true believer in the potential of dogecoin, I am excited to be a part of the growing community and I'm eager to share my knowledge and experience with others. When not busy with dogecoin, I enjoy golf, and I can often be found on the golf course.

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