The Securities and Exchange Commission (SEC) has raised concerns over the recent surge of applications for spot bitcoin exchange-traded funds (ETFs), stating that the filings are lacking clarity and comprehensive information, according to a report by the Wall Street Journal.

A variety of firms have submitted the applications such as BlackRock and Fidelity Investments.

Following BlackRock’s lead, a wave of traditional and crypto asset managers, including Fidelity Investments, Ark Investment Management, Invesco, WisdomTree, Bitwise Asset Management, and Valkyrie, have reactivated or amended their applications for spot bitcoin ETFs in recent days. The approval of such an ETF would mark a significant milestone for the industry, providing broader institutional access to bitcoin and allowing investors to trade bitcoin as easily as stocks, albeit at the loss of some of bitcoin’s properties.

Experts predicted BlackRock’s application would address the SEC’s concerns through an agreement to share surveillance of a spot bitcoin-trading platform with Nasdaq, the proposed ETF’s listing exchange.

Nevertheless, the SEC informed the exchanges that the filings lacked key details, such as the precise surveillance-sharing agreement that would be implemented. A spokesperson for Cboe told the Wall Street Journal that they plan to update and refile the application.

The SEC’s critique has once again highlighted the regulatory challenges surrounding the launch of spot bitcoin ETFs. Market participants await updates from the asset managers and exchanges to address the concerns raised by the SEC. As the industry eagerly anticipates the potential approval of a spot bitcoin ETF, stakeholders hope that the revised filings will provide the clarity and comprehensive information necessary to gain regulatory acceptance.