Crypto Market News: Following the recent upsurge in Bitcoin price over the recent wave of spot Bitcoin ETF applications from financial bigwigs, the U.S. Securities and Exchange Commission (SEC) cited technical discrepancies in the filings. This led to a reversal in trader sentiment as Bitcoin price briefly plunged before recovering on Friday. The recent spree of spot Bitcoin exchange traded funds (ETFs) filings from Blackrock, Valkyrie, Bitwise, Invesco, Fidelity and WisdomTree catapulted the crypto market prices in the last two weeks.
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A Wall Street Journal report on Friday cited sources in the SEC officials as saying that the recent spot ETF applications are inadequate. The regulators said the filings were not clear and comprehensive as details of the surveillance sharing agreement with crypto exchanges was missing. However, this is most likely to be a request to refile on the grounds of incomplete information in the filings.
Bitcoin Price Showed Overreaction?
Reacting to the market reaction to the US SEC news on the filings, popular analyst Will Clemente said the traders might have overreacted to what was just a technical concern that Blackrock and Fidelity can fix in the refiling. Hence, the refilings from the asset managers could have a mention of Coinbase as the Bitcoin exchange they are linked with to have the surveillance sharing agreement.
Think the market is overreacting here, seems like the “denial” is just a technicality and Blackrock/Fidelity just have to refile naming Coinbase as the exchange that they have a “surveillance-sharing agreement” with
— Will Clemente (@WClementeIII) June 30, 2023
If and when the SEC decides on the spot Bitcoin ETF filings officially, it could turn out to be a huge market moving event for a long time ahead. It may be recalled that in the recent SEC lawsuits, many felt that US based crypto exchange Coinbase was treated differently in comparison to the harsh charges leveled against Binance CEO CZ, although both the cases involved violation of securities laws.
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Source: https://coingape.com/crypto-market-overreacted-to-us-sec-blackrock-bitcoin-etf-news/