The price of bitcoin fell Friday following a report that recent bitcoin filings from big names such as BlackRock and Fidelity have been deemed inadequate in the eyes of the U.S. Securities and Exchange Commission.
Bitcoin finished the day below the flat line at $30,398.43, according to Coin Metrics. Earlier, it briefly fell under the $30,000 level, after rising as high as $31,260.52.
Bitcoin ended the week down 1.5%. Nevertheless, it finished the month up 12.3%, following a down month in May, which was the cryptocurrency's first losing month of the year and worst month since November 2022. June's positive performance brought its year-to-date gains to 83%.
The move came after The Wall Street Journal reported Friday that the SEC told Nasdaq and Cboe Global Markets, both of which filed bitcoin exchange-traded funds applications on behalf of various institutions this month, that the filings aren't sufficiently clear or comprehensive.
Specifically, the SEC said it returned the filings because they didn't name the spot bitcoin exchange that the Nasdaq and Cboe would have a "surveillance-sharing agreement" with or provide enough detail about the arrangement, according to the report.
The filings can be resubmitted. A Cboe spokesperson told CNBC that the exchange plans to update and refile.
The SEC has said repeatedly that it can't let a bitcoin ETF go forward until one can demonstrate it will be sufficiently structured to prevent fraud and manipulation, in response to previous attempts at a successful filing. The surveillance agreement was included in BlackRock's filing this month to satisfy that worry. Other funds have similar language in their applications.
WisdomTree did not respond to requests by CNBC for comment. Nasdaq, BlackRock's iShares and Fidelity, which refiled its paperwork for a bitcoin ETF on Thursday, declined to comment. The SEC also declined to comment.
Bitcoin has been trading sideways all week following a 17% rally in the previous week driven primarily by the wave of applications for a spot bitcoin ETF. BlackRock had been the first to file earlier in the month, and its move injected some optimism into the market and helped push bitcoin over the $30,000 level. This quarter, bitcoin has struggled to maintain that level as the industry has been under immense pressure from U.S. regulators and specifically the SEC.
Meanwhile, altcoins surged as some investors speculated that money may flow back to other crypto assets if the struggle to get a bitcoin ETF persists. Litecoin soared 2% while the Solana token advanced nearly 8%. Ether and Cardano's ada each rose more than 3%. Polygon's matic token gained 4%.
This reaction could be overblown, according to Chris Martin, head of research at Amberdata. However, altcoins had other drivers, he added, including expectations of a July Fed rate hike, a bullish signal for crypto assets with especially high volatility.
"These tokens each have their own nuance and different reasons, but it's reasonable to expect that market confusion is leading some to move into higher risk appetites," he said.
— CNBC's Jesse Pound contributed reporting.