Is this Just ‘Buying The Dip?’ Bitcoin Plummets After US SEC ‘Returned’ Spot Bitcoin ETF Filings

World’s first-ever cryptocurrency asset plummeted Friday after the US Securities and Exchange Commission (SEC) commented about the inadequacy of the applications on spot Bitcoin exchange-traded fund (ETF).

Bitcoin plummeted below the $30,000 price level after Wall Street opened on Friday as markets grew anxious about the fate of its first spot ETF.

Data from CoinMarketCap showed that Bitcoin, the world’s largest crypto asset by market capitalization briefly dipped to $29,500 and hit nine-day lows before climbing back to the $30,000 price level on the news that the major Wall Street regulator has “returned” the spot Bitcoin ETF applications.

The news originated from the Wall Street Journal, which cited an “unidentified source” as the root of the information and disclosed the reason behind the applications’ rejection.

“The SEC told the exchanges that it returned the filings because they didn’t name the spot bitcoin exchange with which they are expected to have a ‘surveillance-sharing agreement’ or provide enough information about the details of those surveillance arrangements. Asset managers can update the language and refile,” the report said.

It is worth noting that recent BTC ETF applications triggered the latest Bitcoin price rally that took the maiden crypto to new yearly highs.

But, some think that the latest dip is just the market “overreacting” to the news.

“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, co-founder of the institutional-grade research firm Reflexivity Research, said.

“Stop selling, you fools. Market overreaction at it’s finest for #Bitcoin,” crypto analyst and MN Trading founder Michaël van de Poppe told the crypto community.

“Hold up a second, this isn’t as bad as headline. The key paragraph is deep in story. 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,” Senior ETF Analyst for Bloomberg Eric Balchunas explained.

“BlackRock can still refile for the BTC spot ETF… this news is noise IMO. Buying the dip,” financial commentator who uses the Twitter handle @tedtalksmacro, tweeted, adding that the report “could even be interpreted that the SEC are indicating to BlackRock, what they need to do, to get this across the line and approved… which is also positive.”

Bitcoin saw a 0.54% loss and was trading in the red zone at $30,324.26 over the past 24 hours with a 24-hour trading volume of up by 79.38% a4 $24 billion as of 1:45 p.m. ET on Friday, based on the latest data from CoinMarketCap.