An undisclosed decision on the bitcoin ETF brought down the quotes of cryptocurrencies

The US Securities and Exchange Commission (SEC) said recent filings by asset managers to launch bitcoin spot exchange-traded funds (ETFs) were not clear and comprehensive enough, a source familiar with the matter said.

The SEC has communicated its concerns to exchanges Nasdaq (NDAQ.O) and Cboe Global Markets (CBOE.Z), which have filed filings on behalf of asset managers including BlackRock (BLK.N) and Fidelity, the source added on Friday.

Bitcoin, which has surged since BlackRock filed on June 15, fell after the Wall Street Journal first reported on the SEC rejection on Friday. The world's largest cryptocurrency last fell 1% to $30.142.

The SEC, Fidelity, BlackRock and Nasdaq declined to comment on the report, while Cboe was not available.

ETF filings from such large firms have revived investor hopes that a Bitcoin ETF will finally be approved by the SEC and revived interest in cryptocurrencies that have been hit by a series of cryptocurrency company crashes, including the sudden collapse of the FTX exchange late last year. year.

The SEC has rejected dozens of Bitcoin spot ETF applications in recent years, including one from Fidelity in January 2022.
In all cases, the documents fell short of standards designed to prevent fraud and manipulation and to protect investors and the public interest.

In an attempt to address these issues, BlackRock and Fidelity's filings proposed a surveillance mechanism to prevent manipulation, but the filings did not specify which bitcoin exchange would be involved.

Blockchain-related stocks fell after the SEC decision: Coinbase (COIN.O), Riot Platforms (RIOT.O) and Marathon Digital (MARA.O) fell 3-3.7%.