In today’s latest development, the United State Securities And Exchange Commission (SEC) has deemed the recent spot Bitcoin ETF filings by various asset managers as “inadequate.”

According to a report by Wall Street Journal, the U.S. financial watchdog communicated this resolution to the Nasdaq and Chicago Board Options exchanges (Cboe), stating these fillings are not “sufficiently clear and comprehensive.

In this process, Nasdaq and Cboe represent the asset managers behind the ETF fillings, including BlackRock, Fidelity, ARK, etc.

To the SEC, the Bitcoin ETF applications should have included more information on their “surveillance-sharing agreements” and perhaps the spot Bitcoin exchanges that would be involved in those agreements.

SEC Accused Of Having Favourites

Following the news breakout of the SEC’s resolution, the crypto market has taken a hit, with market leader Bitcoin down by 0.49% to trade at $30.033.32 based on data by CoinMarketCap.

Furthermore, there has been a host of reactions from crypto enthusiasts and investors. One particular crypto analyst with the Twitter handle @DavidPBitcoin suspects the SEC of playing favorites.

According to @DavidPBitcoin, the recent statement by the SEC appears as an attempt by the commission to get the Bitcoin ETF application filed by BlackRock “back up the pecking order for approval ahead of other asset managers.

Valued a total AUM of $9.09 trillion, BlackRock Inc.stands as the largest assets manager in the world. On July 15, the company filed for a spot market Bitcoin ETF, sparking a wave of similar applications by other notable asset managers, including Fidelity, Invesco, WisdomTree, and ARK Invest.

Analyst @DavidPBitcoin alleges that the SEC has some form of hostility towards ARK, who was widely reported to be leading the race for approval some days ago.

He claims the U.S. securities regulator is trying to reshuffle this order by causing the existing ETF fillings to be withdrawn so that BlackRock can get back in front upon resubmission.

However, as interesting as this take may be, it is worth stating that barely any evidence supports a friendly relationship between the SEC and BlackRock. There is no evidence to suggest that the commission is working against the ambitions of ARK Invest.

The First U.S. Spot Bitcoin ETF May Take Longer To Arrive

Due to the recent revelations by the SEC, the crypto space may need to wait longer to approve the first-ever U.S. spot market Bitcoin ETF

Before BlackRock’s application, the SEC has been well-known for rejecting all Bitcoin ETF filings from various firms, including Grayscale, Bitwise, and Ark Invest.

Although the recent batch of asset managers has been allowed to update their fillings with the necessary information and resubmit, there is still no guarantee they would match the commission’s standards.

Featured Image from Investopedia, chart from Tradingview.