Bitcoin Prices Remain Stable Following Bitcoin ETF Rejections by SEC

0
105

Over the past couple of months, there has been a lot of talk surrounding Bitcoin exchange-traded funds. Many say that Bitcoin ETF is the only way for institutional investors to get in on the market. Others, meanwhile, argue that no solid infrastructure exists as of yet to support Bitcoin ETFs. And after what seems to be a rollercoaster ride, the latter appears to be holding true considering that prices were not negatively affected following the SEC rejections.

On August 24, 2018, the SEC rejected two futures-based Bitcoin ETFs set to be listed on the New York Stock Exchange. The SEC, however, didn’t only reject these 2 proposals, but 7 others. On the surface, it looks like there isn’t much hope for those who await the implementation of Bitcoin ETF. But on the following day, the SEC announced that they will review the rejections of the 9 proposals in accordance to rule 431(e) of the Rules of Practice.

This isn’t entirely new, as the SEC has also re-examined their rulings in other Bitcoin ETF in the past, but they ultimately reaffirmed the initial rejection. What’s different this time is that there remains one Bitcoin ETF proposal yet to be rejected by the commission. This is the proposal of a physical Bitcoin ETF by VanEck and SolidX, which has been argued to be the strongest candidate to be approved by the SEC.

Knowing this, many Bitcoin enthusiasts see a glimmer of hope for Bitcoin ETF. In the midst of all this debate, it is worth looking at how the market has behaved over the past couple of days. After the SEC ruling, prices have remained relatively stable, showing that investors arrant willing to dump their coins just because the commission rejected the ETF proposals.

Some people say that the stable prices prove that ETFs arrant necessary for the growth of the crypto market in the future. Sure, it can have a positive impact once approved, but the market can work well enough without them. Some even go so far as to say that institutional investors should get in on the market in the same way as everybody else does. These people, amidst all the ETF speculation, keep themselves busy by using trading software such as Bitcoin Loophole to line their pockets.

If you belong to the group that considers Bitcoin as an asset that is completely different from mainstream financial assets, then the SEC rejections should not have an impact on your holdings. You may even consider these rejections as a blessing in disguise, particularly if you do not want to see institutional investors putting their money into the market.

But if you still hope that Bitcoin ETF will become a reality someday, then you may have white a bit of waiting to do. It appears that the infrastructure just isn’t there yet, and the regulatory approval over ETFs continues to be highly speculative. Instead of merely waiting, make better use of your time by looking at other investment opportunities in the crypto space.

LEAVE A REPLY

Please enter your comment!
Please enter your name here