The WSJ , Friday morning, reported that the U.S. Securities and Exchange Commission said recent filings for a bitcoin ETF were inadequate.

In just a few moments, the news caused the price of Bitcoin ( BTC ) to plummet by $1,000 or over 3%. Bitcoin was just above $30,000 at the time of publication.

According to the article, the SEC informed Nasdaq (formerly CBOE) that their applications were not sufficiently comprehensive and clear. This included BlackRock and Fidelity, two asset managers.

At issue, the story continued, is that the filings didn’t have enough detail with respect to the “surveillance-sharing agreements,” including which spot bitcoin exchange would be used. Asset managers can refile and update their applications. The CBOE has indicated to both the WSJ as well as CoinDesk its intention to do this.

In previous ETF refusal orders, the SEC stated that a sponsor of a Bitcoin trust would be required to enter into a surveillance-sharing contract with a market of significant size.

The agreement will allow the trading platform and sponsor to identify any market manipulators.

At the moment, there is no federal regulator that has oversight over spot bitcoin markets. The Commodity Futures Trading Commission (CFTC) has been lobbying to change this situation for years.

A spokesperson for the SEC told CoinDesk that they would not comment on individual filings.

BlackRock’s mid-June spot ETF application had been the catalyst for the strong rise in bitcoin prices since then, taking the cryptocurrency from below $26,000 up to one-year-highs above $31,000. BlackRock’s application triggered a flurry of other filings, including those from fellow asset managers Invesco (IVZ), and Fidelity. Both companies re-filed their previously rejected spot Bitcoin ETFs.

BlackRock, Fidelity and Galaxy (who filed with Invesco in conjunction) all declined to provide a comment to CoinDesk.

Updated at 15:02 UTC on June 30, 2023: Adds context.