SEC Rejects BlackRock and Fidelity’s Bitcoin ETF Applications, Sending Bitcoin Price into a Tailspin

Lack of Clarity and Investor Protection Criteria Leave Investment Giants BlackRock and Fidelity Stranded in their Pursuit of Bitcoin ETFs

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The US Securities and Exchange Commission has announced that applications submitted by investment giants to create ETFs in bitcoin do not meet the required requirements, informed sources told the Wall Street Journal.

The SEC reportedly informed the Nasdaq and Cboe exchanges that the applications lacked the required clarity and completeness.

BlackRock and Fidelity had reportedly submitted a request to the SEC to create an ETF that would track the price of bitcoin on the spot market.

Immediately after the WSJ report the price of bitcoin plunged below $30,000 to $29,868, recording a 2% loss.

The US regulator has rejected dozens of applications for ETFs in bitcoin in recent years, including an earlier application by Fidelity in January 2022.

In all cases, the authority stressed that the applications did not meet criteria to protect investors from fraud and manipulation.

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