Bitcoin Drops After SEC Report Says BlackRock Bitcoin Spot ETF Deposit Is Inadequate

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Bitcoin fell on Friday following a report that the Securities and Exchange Commission said deposits for a Bitcoin cash exchange-traded fund from BlackRock and others that have recently supported crypto prices were inadequate.

Bitcoin price fell 1.5% in the past 24 hours to $30,250. The biggest crypto rose from $31,000 to $29,600 after the Wall Street Journal reported, citing unnamed sources, that the SEC said a recent wave of applications to launch ETFs containing spot Bitcoin , or the token itself,…

Bitcoin fell on Friday following a report that the Securities and Exchange Commission said deposits for a Bitcoin cash exchange-traded fund from BlackRock and others that have recently supported crypto prices were inadequate.

Bitcoin price fell 1.5% in the past 24 hours to $30,250. The biggest crypto rose from $31,000 to $29,600 after the Wall Street Journal reported, citing unnamed sources, that the SEC said a recent wave of applications to launch ETFs containing spot Bitcoin , or the token itself, was inadequate.

While funds that hold Bitcoin futures, which trade on regulated US exchanges, have already been approved, the industry has long been waiting for a spot Bitcoin ETF. News that BlackRock (ticker; BLK), Fidelity Investments and other traditional finance stalwarts had filed applications including a new market watch mechanism to appease regulators had sent Bitcoin prices skyrocketing in recent weeks. .

Not only would a BlackRock or Fidelity spot Bitcoin ETF likely usher in a new wave of retail involvement in crypto, it would also herald a significant push into the digital asset space by some of the biggest players in finance. The Journal’s report that the SEC considers their applications to be sufficiently clear and comprehensive is likely to undo some of the recent optimism about crypto.

Bitcoin previously traded higher on Friday, hitting near its recent high near $31,500, the highest level since June 2022, alongside the Dow Jones Industrial Average and S&P 500 after key data was released on inflation.

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The Core Personal Consumption Expenditure (PCE) index, the Federal Reserve’s favorite gauge of inflation, showed inflation continuing to decline, alleviating some fears that the central bank will continue to aggressively raise rates. of interest.

Beyond Bitcoin, Ether, the second-largest crypto, was steady at $1,850. Smaller cryptos, or altcoins, pared big gains from earlier, with Cardano climbing 2% and Polygon climbing 1%. Memecoins such as Dogecoin and Shiba Inu were both just above the dish.

Write to Jack Denton at [email protected]

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