Crypto Market News: The U.S. Securities and Exchange Commission (SEC) on Friday reacted for the first time on the recent spree of spot Bitcoin exchange traded funds (ETFs). The Bitcoin price took a sharp plunge immediately after reports said the US regulator made the comment. The development comes just a week after the SEC received a wave of applications from top asset management firms. It remains to be seen if this could be beginning of a long drawn legal and regulatory battle for the spot Bitcoin ETF approvals.

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Earlier, CoinGape reported that Blackrock, the world’s largest asset management company, filed for an ETF application with SEC. This was followed by applications from Valkyrie, Bitwise, Invesco, Fidelity and WisdomTree, seeking approval for ETFs.

US SEC Says Spot Bitcoin ETF Applications ‘Inadequate’

According to a report from the Wall Street Journal, sources in knowledge of the development said the SEC officials feel the recent spot ETF applications are inadequate. The report added that the SEC believes “recent filings from BlackRock, Fidelity and others are not clear and comprehensive. The SEC said the asset managers did not mention the spot Bitcoin exchange they are associating with to have the surveillance sharing agreement. This could likely be more of a technicality than a hindrance to the SEC’s consideration. However, further uncertainty or delay in delivering the decision could put the crypto market in a difficult spot as the SEC officials are not in the habit of giving clarity on what exactly is the formal procedure to apply for the ETFs.

The crypto asset prices showed an immediate bearish reaction to the regulator’s comment, with Bitcoin falling around 3% in response. The SEC claims the ETF applications to be inadequate in clarity and completeness, which means the likes of Blackrock and Fidelity will be refiling their ETF applications.

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Anvesh reports major crypto updates around regulation, lawsuits and trading trends. Published around 1,000 articles and counting on crypto and web 3.0. He is currently based in Hyderabad, India. Reach out to him at [email protected] or twitter.com/BitcoinReddy

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