The U.S. Securities and Exchange Commission (SEC) has reportedly deemed recent applications for a spot bitcoin ETF as insufficient, leading to a notable drop in the price of BTC. According to a Friday report by Wall Street Journal.

The Friday report however cited sources familiar with the matter.

The SEC’s stance has caused a swift reaction in the market, with bitcoin’s price falling by over 3%, or $1,000, within minutes. As of the time of reporting, bitcoin was trading a little above $30,000.

Per the report, the SEC informed Nasdaq and CBOE, the exchanges that submitted the spot ETF applications on behalf of several asset managers including BlackRock and Fidelity, that the fillings lack clarity and comprehensiveness. The main issue appears to be the lack of detail regarding “surveillance-sharing agreements,” including the specific spot bitcoin exchange to be used.

Even with this move that appears like a setback for the asset managers, they can however, still update their filings and refile. CBOE has told the Wall Street Journal that it is planning to refile. However, when Coindesk reached out to the SEC regarding the matter, the commission refused to comment on the report.

BackRock applications for the spot bitcoin ETF have spurred several (more than five) asset managers to also file for bitcoin ETF in June, the filing raised the eyebrows of crypto enthusiasts of the potential attraction of institutional investors in the crypto space, also, the BlackRock filing sparked the price of the leading cryptocurrency to a one-year high in June.