SEC Criticizes BlackRock and Other ETF Filings for Bitcoin as Price Drops Below $30,000

Bitcoin Slumps Below $30,000 after SEC Rejects BlackRock's ETF Filings

The price of Bitcoin, the largest cryptocurrency by market capitalization, experienced a sudden drop, falling from above $31,000 to briefly below $30,000. The dip came after the U.S. Securities and Exchange Commission (SEC) deemed the ETF filings by BlackRock and other asset managers as "inadequate." The regulatory agency criticized Nasdaq and Cboe, the exchanges handling the applications, for their lack of specificity regarding surveillance-sharing agreements and the identification of Bitcoin spot exchanges to be partnered with. While the SEC's comments may be seen as a temporary setback, allowing for updates and refilings, the rejection impacted the Bitcoin market during a period of a rally. BlackRock, along with other major asset managers like WisdomTree, Invesco, Bitwise, ARK Invest, and Fidelity, has been seeking approval for a Bitcoin spot ETF, which could attract significant investment from brokerage accounts and pension funds. Despite the setback, the crypto market remains hopeful that a reputable firm will eventually secure the SEC's approval and help alleviate concerns of market manipulation.

SEC Criticism and Hope for a Bitcoin ETF Approval

This downturn followed the U.S. Securities and Exchange Commission's (SEC) criticism of the ETF filings made by BlackRock and other asset managers. Nasdaq and Cboe, the exchanges responsible for handling the applications, were called out by the regulatory agency for their lack of specificity regarding surveillance-sharing agreements and the identification of Bitcoin spot exchanges to be partnered with. The SEC's comments were seen as a setback, but there is hope that the exchanges can update their applications and refile, as indicated by Bloomberg ETF analyst Eric Balchunas. Despite this temporary setback, the crypto market remains optimistic that a reputable firm like BlackRock will eventually secure the SEC's approval for a Bitcoin spot ETF, which could attract significant investment from brokerage accounts and pension funds.

In mid-June, BlackRock filed an application for a Bitcoin spot ETF. However, no asset manager has yet received approval from the SEC for such an ETF. If approved, this type of ETF would expose Bitcoin to trillions of dollars from brokerage accounts and pension funds. The news of BlackRock's filing sparked a rally in the crypto market, as it raised hopes that the firm's stature and surveillance-sharing agreement with Nasdaq could address concerns of market manipulation, one of the reasons the SEC has denied previous Bitcoin spot ETF applications. Following BlackRock's lead, other major asset managers such as WisdomTree, Invesco, Bitwise, ARK Invest, and Fidelity either resubmitted or updated their ETF applications with their own surveillance-sharing agreements.

Despite the recent drop in price, Bitcoin had been experiencing a significant rally, reaching its highest price in over a year amid a flurry of ETF applications by prominent institutions. Throughout the latter half of June, Bitcoin consistently traded above $30,000, reflecting an almost 100% increase in price since January. The crypto market remains dynamic and responds to various influences, including regulatory developments and institutional interest.

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Summing it up

In conclusion, the recent slump in Bitcoin's price below $30,000 was triggered by the U.S. Securities and Exchange Commission's rejection of the ETF filings by BlackRock and other asset managers. The SEC criticized the lack of specificity in the filings, particularly regarding surveillance-sharing agreements and the identification of Bitcoin spot exchanges to be partnered with. While this setback affected the Bitcoin market during a period of rally, there is optimism that the exchanges can update their applications and refile. The crypto market remains hopeful that a reputable firm like BlackRock will eventually secure the SEC's approval for a Bitcoin spot ETF, which has the potential to attract significant investment from brokerage accounts and pension funds.

Despite the recent drop in price, Bitcoin had been experiencing a notable rally, reaching its highest price in over a year. The surge in interest was fueled by the influx of ETF applications from major asset managers such as BlackRock, WisdomTree, Invesco, Bitwise, ARK Invest, and Fidelity. The market anticipates that these institutions, with their surveillance-sharing agreements, can address concerns of market manipulation that have hindered previous approval attempts.

The crypto market remains dynamic and responsive to regulatory developments and institutional interest. While setbacks occur, as seen with the SEC's rejection, the industry continues to evolve and adapt. Individuals interested in learning more about cryptocurrencies can explore Fortune's Crypto Crash Course, a valuable resource for gaining knowledge about the crypto landscape.

As the crypto space continues to grow and mature, it remains to be seen how regulatory decisions and institutional involvement will shape the future of cryptocurrencies like Bitcoin.


Originally Published at: https://fortune.com/crypto/2023/06/30/bitcoin-slump-30000-sec-spot-etf-applications-inadequate-nasdaq-cboe-blackrock/
Business Topic: Cryptocurrencies