BREAKING NEWS

Bitcoin Prices Drop After SEC Postpones ETF Decision

Bitcoin Prices Drop After SEC Postpones ETF Decision
08 Aug
5:00

Bitcoin prices declined after the SEC announcement. Shutterstock

Bitcoin prices pushed lower today, after the U.S. Securities and Exchange Commission (SEC) announced that it was delaying its decision on whether to approve a rule that would allow Cboe to offer shares of a Bitcoin exchange-traded fund (ETF).

If approved, these shares would be issued by VanEck SolidX Bitcoin Trust and worth roughly 25 Bitcoin each. 

As a result, the shares would be “more geared towards institutional investors,” noted Scott Weatherill, chief risk manager of B2C2 Japan

[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Notable Price Decline

The price of Bitcoin fell to as little as $6,685.14 today at 21:15 UTC (5:15 p.m. EST), according to the CoinDesk Bitcoin Price Index (BPI).

At this level, it had declined roughly 6.5% from its intra-day high of $7,148.52, additional BPI figures show.

The digital currency’s price later recovered somewhat, trading at $6,727.78 at the time of report.

Bitcoin’s Recent Trend

Bitcoin prices have been following a downward trend lately, falling from more than $7,750 roughly one week ago to roughly $6,725 at the time of this writing.

This SEC announcement seems to have worsened that trend, causing the digital currency’s price to fall more than 6% in a matter of hours.

However, the loss that Bitcoin prices suffered today is far less than the nearly 30% decline that Bitcoin prices suffered after the SEC’s March 2017 decision to shoot down the Bitcoin ETF proposed by Cameron and Tyler Winklevoss.

This latest ruling on the VanEck ETF “wasn’t a surprise to anyone,” said Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet.

I’d be very surprised if we see a Bitcoin or cryptocurrency ETF this year,” he added. 

In spite of this prediction, the market has progressed, noted Garcon.

“In terms of the price, we’ve heard a lot of good news recently about Bitcoins future and its utility,” he stated. 

“I think the general sentiment around Bitcoin is still positive even in the wake of the SEC’s decision. If Bitcoin’s future was contingent on SEC approval then we’d be in trouble. News like this used to trigger a volatile uproar, so this modest decline in price only demonstrates asset and market maturation.” 

Disclosure: I own some Bitcoin, Bitcoin Cash and Ether.

Source: https://www.forbes.com/sites/cbovaird/2018/08/07/bitcoin-prices-drop-after-sec-postpones-etf-decision/

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