Bitcoin Plunges as SEC Says Spot Bitcoin ETF’s Filings are “Inadequate”

US Securities and Exchange Commission says Bitcoin ETFs are not adequate as the companies behind Bitcoin ETFs did not provide comprehensive details in their filings.

In a surprising series of events, the tussle between the Securities and Exchange Commission and crypto companies continues. SEC is even rejecting crypto products by traditional asset management companies.  

As reported by WSJ, SEC spoke to CBOE and Nasdaq and informed them about the shortcomings in their Bitcoin ETF filings. As per SEC, the applications do not give clear information about spot Bitcoin ETFs.

Yesterday, Fidelity, Boston-based asset management firm, filed for spot Bitcoin ETF. The news went viral in the crypto community as it is the second big company in a row to file for a Bitcoin ETF. In 2021, Fidelity filed for a BTC ETF but SEC rejected it.

Before Fidelity, BlackRock, world’s largest asset management firm, submitted an application for a spot Bitcoin ETF. The filing by BlackRock pumped BTC price and Bitcoin even reached to $30k.

But after recent statement by SEC about filings, Bitcoin price is plunging. Currently, Bitcoin is trading at $30,047 after decreasing by 1.57% in the last 24-hours.

Some crypto experts have shared their two cents on the current Bitcoin-related scenario. After SEC’s remarks, bears went into action and started dumping BTC. Famous crypto trader by the name of Ash Crypto expresses his anger on crypto members for dumping Bitcoin. He even accuses them of manipulating the crypto market.

Michaël van de Poppe, founder of MN trading, requests crypto traders and investors to stop selling BTC. He calls it “market overreaction”.

Eric Weiss, digital asset manager, says two world’s biggest asset managers, Fidelity and BlackRock, are asking their clients to invest in the flagship crypto, Bitcoin.

He further says:

“The storm is coming but remarkably, we still have an opportunity to stack sats at 50% off the highs before the flood of fiat washes away the affordable Bitcoin.”

Binance Founder, CZ, says Bitcoin’s price fluctuates but “its utility is steadily increasing.”