SEC Bitcoin (BTC) ETF Delay Causes BTC Price to Drop

Securities Exchange Commission Review Bitcoin Broker Behavior

Securities Exchange Commission Review Bitcoin Broker Behavior

On Wednesday, the Securities and Exchange Commission chose to delay its decision regarding the proposed Bitcoin exchange-traded fund by VanEck and Solid X. The bitcoin ETF, which was first submitted for review by financial firm VanEck and cryptocurrency firm SolidX in June, would allow investors to buy into the cryptocurrency market without purchasing bitcoins on an exchange. The SEC received more than 1,300 comments on the proposed rule change as of August 6, it said.

Morehead said that this hesitancy on the part of the SEC to approve a bitcoin ETF should not have come as a surprise and that investors should prepare to wait "quite a long time" if they hope to see one of these products trading on a regulated stock exchange. She explained that her colleagues cited "a number of reasons for that decision, and specifically what I think they did is they looked through to the underlying asset - in this case, that would be bitcoin, and they raised some concerns about the market for that underlying product".

Following Bitcoin's trend, Ethereum prices also plunged to 4-1/2 month low, following the general pessimism created by SEC's postponement of its pending decision on Bitcoin ETF, which is seen to have affected the altcoins as well.

The SEC is slated to give its final decision on the VanEck-SolidX proposal during late February 2019.

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What do you think of the SEC postponing its decision on Vaneck/Solidx bitcoin ETF?

"The crypto market cap lost 20 per cent in the last two weeks, falling from $US300 billion to $US250 billion", said analysts for FXPro, a London-based foreign exchange broker.

At the time of writing, Bitcoin was up 0.37% to $6,303.7, with the range bound end of the day on Wednesday continuing into the early hours of this morning. According to reports, $9 billion was wiped out of the market.

A publicly traded Bitcoin fund, better known as the Bitcoin ETF (Exchange Traded Fund), continues to be considered by the cryptocurrency community as a "holy grail" for reversing the trend and returning a bull market.

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The SEC has therefore bought itself more time, and has announced that it's delaying its decision on the matter until September 30.

Meanwhile, Newton added that in order to approve the decision, the SEC would have to do so in the knowledge the ETF was backed by physical bitcoin, "either stored by the Chicago Board of Exchange or a third party".

As aforementioned, altcoins followed the foremost digital asset, with cryptos like XRP and Bitcoin Cash (BCH) actually outperforming Bitcoin by upwards of 1%.

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