Bitcoin plummeted to $29,700 after news of ETF rejection

Bitcoin plummeted to $29,700 after news of ETF rejection

Author: Robert Strickland (crypto-journalist)

Bitcoin plummeted to $29,700 after news of ETF rejection
Bitcoin plummeted to $29,700 after news of SEC rejection of spot ETF applications
The SEC called recently filed applications for spot exchange-traded bitcoin funds inadequate and returned them for re-issuance

On June 30, bitcoin plummeted from $31,000 to $29,700. This happened within 10 minutes, once it was revealed that the Securities and Exchange Commission (SEC) had called recently filed applications for spot bitcoin ETFs inadequate and returned them for re-issuance.

The return of the applications was reported by The Wall Street Journal, citing sources familiar with the matter. According to their information, the regulator informed the Nasdaq and Cboe Global Markets exchanges, which submitted applications on behalf of asset managers including BlackRock and Fidelity, that the applications were "not sufficiently clear and comprehensive."

The companies can supplement their filings with the information specified by the SEC and resubmit them, the newspaper said.

BlackRock will launch a bitcoin ETF. How it will affect the price of the cryptocurrency

BlackRock filed papers with the SEC in mid-June to launch a Bitcoin trust. Fidelity Investments, Ark Investment Management, Invesco, WisdomTree, Bitwise, and Valkyrie followed BlackRock's example by filing with the SEC one after another to launch a spot bitcoin ETF.

An exchange-traded fund that tracks the actual price of Bitcoin is a long-awaited development for the market, as it would provide greater access to the cryptocurrency. It would allow investors to buy and sell bitcoins through a brokerage account just as easily as stocks.

Since 2017, the SEC has repeatedly rejected applications for such funds on the grounds that the product is vulnerable and could lead to market manipulation.

BlackRock's application was seen by investors and analysts as a good chance to launch a spot bitcoin-ETF. The price of the first cryptocurrency began to rise and crossed the $31,000 mark on June 30 after reports that Fidelity Investment Company filed with the SEC. According to CoinGecko, as of 17:15, BTC is trading at $30,100.


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