The SEC has deemed the Bitcoin ETF applications from BlackRock and Fidelity inadequate, according to an unnamed source. The SEC claims that the applicants have not provided enough specifics about how they will manage a “surveillance-sharing agreement” to prevent fraud and manipulation. The SEC has previously cited the potential manipulation of Bitcoin’s price as a reason for not approving a Bitcoin ETF. Investors are interested in a Bitcoin ETF as it would allow them to invest in Bitcoin without dealing with custody of the asset. Fidelity has argued that their product would help investors mitigate risk.

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