March 19, 2019

Bitcoin ETF ruling delayed, cryptocurrency market plunges

11 August 2018, 11:54 | Joann Bryant

Bitcoin loses most of its gains from July rally as SEC postpones ETF decision

Securities Exchange Commission Review Bitcoin Broker Behavior

And when it comes to discretion, the Securities and Exchange Commission's decision to further explore the creation of Bitcoin-backed exchange traded fund products is good for the market, according to cryptocurrency industry insider and founder of Blackwell Capital Brian Sewell.

Adding more on what this meant, Morehead noted that investors often overreact to news, as global traders seek to speculate on how an announcement or decision will affect the price of a crypto asset.

Following the SEC's latest decision to reject the proposed rule change for a bitcoin ETF, SEC Commissioner Hester Peirce voiced her opinion in an interview with Cnbc on Wednesday.

Recent positive news has failed to provide much support for bitcoin. Some had argued that VanEck's proposal was more likely to gain approval thanks in part to plans for a high minimum share price that would discourage retail investors.

Accordingly, it decides to approve, disapprove, or extend the period of consideration. They are required to take action within 45 days after the date of the publication in the Federal Register. In July SEC decline to approve Winklevoss twin's bid to create an ETF and the regulator is still silent about the ruling on other institutions which have applied on the same. It targeted September 30 as the date on which it will either approve or disapprove the CBOE rule change that would allow the ETF.

The SEC commission had concerns about the price volatility and the ease of withdrawing cash from customers. The reason for this was that the risks associated with high levels of volatility and cryptocurrency needed more time to assess the approval or rejection of the proposed rule change.

This had a spiral effect on the overall cryptocurrency market which resulted in a huge 10 per cent fall in market capitalisation to $230 Billion. The presentation lists as examples CME bitcoin futures, Cboe bitcoin futures, Ledgerx bitcoin swaps and options contracts, and Cantor Exchange self-certified bitcoin swaps contract. Because it is the first with real chances to be approved by the regulatory agency.

Secondly, the product pricing has changed as the proposed trust will use OTC index for pricing and NAV. A physical ETF is one where the underlying asset - in this case, BTC - is physically held by the issuing company. "The SEC has been very cautious with an ETF". And that, with more time to review, the SEC can analyze the true impact of an ETF, and sort through the public notice and comments that are being directed at it regarded cryptocurrencies.

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