The SEC has postponed a decision to approve Bitcoin ETF until September.
The news that the US’ Securities and Exchange Commission would put off the decision to approve the ETF sent crypto markets spiraling. One Bitcoin is now worth just $6,490, whilst the total market cap of all cryptos has fallen to $229b.
The drop has caused some to compare ETF bad news to the China FUD that sent markets careering multiple times in 2017.
#bitcoin ETF delays are the new 'China bans bitcoin' in terms of knee jerk market reaction.
Sad, but predictable. pic.twitter.com/HIELmQwqYO
— Nick Cote (@mBTCPiz) August 7, 2018
The current proposal, initiated by VanEck, follows the rejection of the Winklevoss Bitcoin ETF proposal. There, three out of four commissioners chose to reject the proposal. The one commissioner in support of the proposal took issue with the reasoning of her peers, and published a formal dissent claiming that their logic was ungrounded.
Many had hoped that the new proposal, which if approved is expected to see millions of dollars of institutional money enter the crypto markets, would succeed where Winklevoss had failed due to this criticism.
While the announcement that a decision had been postponed to till September 30th is not a rejection, the crypto markets have reacted sharply, allowing big buyers to scoop up coins on the cheap.
What’s interesting however is that according to one commentator Bitcoin ETF’s are no longer as significant as the markets seem to believe.
BAAKT, a US based startup may have circumvented the need for an ETF through its close association with ICE – BAAKT CEO Kelly Loeffler was until recently Communications Officer at the organisation. She told Bloomberg:
According to the user, many institutions now have a clear and legal framework to buy up Bitcoin for future use for their clients, which will signal the reversal of the bear trend as institutional money floods the market.
Whether this will become a reality is not yet clear, but you can read more about BAAKT here.
Instant Crypto Credit Lines™ from only 5.9% APR. Earn up to 8% interest per year on your Stablecoins, USD, EUR & GBP. $100 million custodial insurance.
This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission - but the prices do not change for you! :)
Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
You might also like
More from Bitcoin News
The Bitcoin appears to be range bound between $9.7K-$9.9K, as the alts are having a mini party, with many altcoins …
In a surprising turn of events befitting for the incredibly interesting crypto-world, the Ethereum based Wrapped Bitcoin (WBTC) protocol recently …