The Wall Street Journal reports that the Securities and Exchange Commission (SEC) has expressed worries about the recent influx of spot Bitcoin exchange-traded funds (ETFs) applications, indicating that the submissions lack both clarity and thorough information.

Echoing BlackRock's strategy, a variety of asset managers such as Fidelity Investments, Ark Investment Management, Invesco, WisdomTree, Bitwise Asset Management, and Valkyrie have recently updated or modified their spot Bitcoin ETF applications. 

The approval of a spot Bitcoin ETF would represent a noteworthy development in the industry, expanding institutional availability of Bitcoin and facilitating its trading on par with stocks.

Analysts forecasted that BlackRock's application, which included an arrangement to collaboratively monitor a spot Bitcoin-trading platform with Nasdaq, the intended listing exchange for the ETF, would respond to the SEC's concerns.

However, the SEC communicated to the exchanges that the filings were missing crucial information, including specific details about the surveillance-sharing agreement to be implemented. A representative for Cboe indicated to the Wall Street Journal that they intend to revise and resubmit the application.

The SEC's feedback has once more underscored the regulatory hurdles that coincide with the introduction of spot Bitcoin ETFs. Market players are now awaiting updates from the asset managers and exchanges to respond to the issues pointed out by the SEC.

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