(Reuters) – The Securities and Exchange Commission said a recent wave of applications filed by asset managers to launch spot bitcoin exchange-traded funds were not sufficiently clear and comprehensive, the Wall Street Journal reported on Friday.
The agency has informed about the inadequacies to exchanges Nasdaq and Cboe Global Markets that filed the applications on behalf of asset managers including BlackRock and Fidelity, the report said, citing people familiar with the matter.
The SEC declined to comment on the report, while Cboe and Nasdaq were not immediately available.
The securities regulator has rejected dozens of spot bitcoin ETF applications in the past few years, including one from Fidelity in January 2022.
In all the cases, the regulator said the filings did not meet the standards designed to prevent fraudulent and manipulative practices and protect investors and the public interest.
The WSJ report on Friday dragged shares of cryptocurrency and blockchain-related stocks lower. Coinbase, Riot Platforms and Marathon Digital fell between 3% and 3.7% in morning trading.
(Reporting by Manya Saini in Bengaluru; Editing by Shinjini Ganguli)
