The SEC has communicated its concerns to the exchanges Nasdaq (NDAQ.O) and Cboe Global Markets (CBOE.Z) which filed the applications on behalf of asset managers including BlackRock (BLK.N) and Fidelity, the source added on Friday. Bitcoin , which has jumped since BlackRock filed its application on June 15, fell after the Wall Street Journal first reported the SEC rejection on Friday. The SEC, Fidelity, BlackRock and Nasdaq declined to comment on the report, while Cboe was not immediately available. The SEC has rejected dozens of spot bitcoin ETF applications in recent years, including one from Fidelity in January 2022. In a bid to address these concerns, the BlackRock and Fidelity filings proposed a surveillance mechanism aimed at preventing manipulation, but the applicants did not name which bitcoin exchange would be involved.

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Persons: Cboe, Carolina Mandl, Manya, Shinjini Ganguli, Michelle Price, Alexander Smith Organizations: U.S . Securities, Exchange Commission, SEC, Nasdaq, Cboe, BlackRock, Fidelity, Wall Street Journal, Marathon, Manya Saini, Thomson Locations: BlackRock, cyptocurrencies, New York, Bengaluru