Bitcoin briefly falls below $30k as SEC says spot Bitcoin ETF filings are inadequate

• Bitcoin price reacted sharply to news that the SEC had said Bitcoin ETFs filings were inadequate.
• The SEC had reportedly returned the filed documents to BlackRock, Fidelity.
• However, BTC recovered above $30k as more details emerged.

Bitcoin briefly crashed to below $30k within minutes on Friday as the US Securities and Exchnage Commission (SEC) reportedly told Nasdaq and the Cboe that recently filed spot Bicoin ETFs by BlackRock, Fidelity and other Wall Street giants were “not clear and comprehensive.”

The regulator has reportedly returned the spot ETF documents.

The markets reaction to the initial news by the Wall Street Journal was swift, with Bitcoin falling to $29,790 and Ethereum below $1,840.

According to WSJ, the U.S. SEC stated that the filing of spot bitcoin ETFs was insufficient, and regulators told Nasdaq that recent filings by companies such as BlackRock and Fidelity were not clear and comprehensive. The SEC returned the documents. https://t.co/HK75jdB3ks

— Wu Blockchain (@WuBlockchain) June 30, 2023

 “Affected by the news, the market crashed within 30 minutes. BTC once fell by more than 5% to below $30,000, ETH fell by more than 4%, and BCH and COMP, which had a large increase today, fell by more than 10%.  Coinglass data shows that in the past 1 hour, the liquidation of the entire network exceeded 84 million US dollars,” Blockchain news reporter Colin Wu tweeted.

However, as it was reported that BlackRock and other asset managers only had to refile their applications correctly, Bitcoin moved back above $30k. Crypto analyst Will Clemente noted:

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