SEC Report on Spot Bitcoin ETF Filings Sends Bitcoin Tumbling

The U.S. Securities and Exchange Commission (SEC) has deemed recent filings for spot bitcoin exchange-traded funds (ETFs) inadequate, causing the price of bitcoin to drop by over 3%. The SEC has informed exchanges Nasdaq and CBOE, as well as asset managers including BlackRock and Fidelity, that the applications lack clarity and comprehensive details, particularly regarding surveillance-sharing agreements and the choice of spot bitcoin exchange. The asset managers have the option to update and refile their applications. The SEC has previously stated that a bitcoin trust sponsor must have a surveillance-sharing agreement with a regulated market of significant size.