Bitcoin price took a sharp plunge immediately after reports said the US SEC commented on the spot ETF applications.

Crypto Market News: The U.S. Securities and Exchange Commission (SEC) on Friday reacted for the first time on the recent spree of spot Bitcoin exchange traded funds (ETFs). The Bitcoin price took a sharp plunge immediately after reports said the US regulator made the comment. The development comes just a week after the SEC received a wave of applications from top asset management firms. It remains to be seen if this could be beginning of a long drawn legal and regulatory battle for the spot Bitcoin ETF approvals.

Earlier, CoinGape reported that Blackrock, the world’s largest asset management company, filed for an ETF application with SEC. This was followed by applications from Valkyrie, Bitwise, Invesco, Fidelity and WisdomTree, seeking approval for ETFs.

The crypto asset prices showed an immediate bearish reaction to the regulator’s comment, with Bitcoin falling around 3% in response. While the SEC claims the ETF applications to be inadequate in clarity and completeness, the likes of Blackrock and Fidelity may have to refile their ETF applications. Also, Grayscale Investments has been fighting for the same after the US SEC rejected the application back in 2022.