Bitcoin pares losses after WSJ report on 'inadequate' spot ETF filings

Companies • June 30, 2023, 10:39AM EDT

UPDATED: June 30, 2023, 1:26PM EDT

Quick Take

Bitcoin pared losses on Friday after shedding more than 4% in just 20 minutes amid a report from the Wall Street Journal that the SEC told the Nasdaq and Cboe exchanges that recent filings for spot ETF funds weren’t “clear and comprehensive.”
It’s since pared some losses and is currently trading at $30,603, up 0.1% over the past 24 hours.
Some analysts questioned if the news was as bad as the WSJ’s headline made it seem.

Bitcoin pared losses on Friday after shedding more than 4% in just 20 minutes in the wake of a Wall Street Journal report that the U.S. Securities and Exchange Commission told the Nasdaq and Cboe exchanges that recent filings for spot ETF funds weren’t “clear and comprehensive.”

The world's largest cryptocurrency by market capitalization, which had been trading around $31,081 before the report, quickly dove to $29,770, falling below $30,000 for the first time in a week, according to data from CoinGecko.

It's since pared some losses and is currently trading at $30,603, up 0.1% over the past 24 hours. Some analysts questioned if the news was as bad as the WSJ's headline made it seem.

"This isn't as bad as headline," Bloomberg ETF analyst Eric Balchunas said on Twitter. "Basically SEC wants them to name the 'crypto exchange' and give more details on SSA. That's understandable, arguably good news. I was under impression they'd have to update that as well."

Surveillance sharing arrangements

The WSJ reported that the SEC had returned several recent filings for spot ETFs because they didn’t provide enough information about surveillance sharing arrangements. Asset managers can update language and refile, the WSJ reported.

RELATED INDICES

See crypto indices

Fidelity rejoined the race to a spot bitcoin ETF on Thursday, following other firms like BlackRock, WisdomTree and Invesco, which have all made similar filings in recent weeks.

The WSJ cited a Cboe spokeswoman as saying it intends to update and refile. Nasdaq and the SEC declined to comment, the WSJ said. Nasdaq and Fidelity declined to comment when contacted by The Block.

Bitcoin blew past $30,000 earlier this month in the wake of the flurry of new ETF announcements, kicked off by BlackRock's filing on June 15. Despite Friday's decline, it's still up 11.2% over the past month.

(Updates bitcoin price.)

About Authors

Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].

Nathan Crooks is the U.S managing editor at The Block, based in Miami. He was previously at Bloomberg News for 12 years, where he helmed coverage of South Florida after roles as a breaking news editor and bureau chief in Caracas, Venezuela. He's interviewed presidents, government ministers and CEOs, and, besides crypto, has covered major news events on the ground from earthquakes to hurricanes to the Chilean mine rescue in 2018. Nathan, a native of Clarion, Pennsylvania, holds a bachelor's degree from the University of Toronto, where he completed a specialist in political science, and an MBA from American University in Washington, D.C.