Coinbase Global Inc. shares
COIN,
were dropping about 2% in morning trading Friday after The Wall Street Journal reported that the Securities and Exchange Commission has deemed inadequate applications by BlockRock Inc.
BLK,
Fidelity and other asset managers for the introduction of spot bitcoin exchange-traded funds. Coinbase shares have been on a sharp rally since BlackRock revealed its plans for such an ETF earlier this month, and a decline for Coinbase’s stock in Friday’s session would snap a five-session winning streak that saw the name surge 26% across the five trading days through Thursday. Coinbase was expected to have a custodial role related to the ETF. The WSJ report discussing the SEC’s negative assessment of the applications cited multiple unnamed sources, and the SEC didn’t immediately respond to a MarketWatch request for comment about the report. Shares of MicroStrategy Inc.
MSTR,
seen as a play on bitcoin due to its holdings in the cryptocurrency, were off 1.4% in Friday’s session, while bitcoin itself
BTCUSD,
was down 1.4% as well.
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