VanEck Reacts To SEC's Bitcoin ETF Concerns

Securities Exchange Commission Review Bitcoin Broker Behavior

The decrease in market cap came as the SEC opted to delay their decision, with a 4% drop within 24 hours to a trade price of $6,500. At this level, Bitcoin's total circulation was worth US$112bn.

The SEC postponed its decision on whether to approve the Bitcoin ETF, dealing a blow to bulls who had bet a green light from the regulator would help sustain last month's tenuous rally.

As it stands, Bitcoin dominance is high, as is the hashrate of Bitcoin, therefore a surge in Bitcoin's price soon could have a huge impact on the rest of the markets.

For the Bitcoin bulls, the only good news on the day was that sub-$6,000 levels were avoided, with Bitcoin also managing to avoid striking a new swing low, a comfort that numerous other major cryptos were unable to enjoy. After reports of financial titans BlackRock and VanEck pursuing approval for Bitcoin ETFs, fresh optimism poured into the crypto space.

A broad selloff in coins of all sizes reduced the market value of virtual currencies tracked by Coinmarketcap.com to $230 billion, the lowest level since November.

As reported by Coindesk, the SEC delayed the decision on a proposed rule change from the Cboe BZX Exchange which if confirmed, will permit the listing of an ETF backed by blockchain startup SolidX and investment firm VanEck. Since Bitcoin has been created to be an endless resource with a total of 21 Million mineable coins, a higher market capitalization means that the value of a single Bitcoin is going to increase.

Should the SEC approve this ETF then it's expected that Bitcoin's value will take a sudden spike since a lot of people will be willing to invest their money in the fund.

"Currently, experts are split on the role bitcoin ETFs" approval plays in the long-term success of bitcoin. She asserted: I think by doing that they went beyond what the statute allows us to do and we should have really focused on the market where the exchange-traded product would trade as opposed to focusing on the underlying bitcoin markets. "The ETF rejection is the same story we've had for five years", he added. "A properly constructed physically-backed bitcoin ETF will be created to provide exposure to the price of bitcoin, and an insurance component will help protect shareholders against the operational risks of sourcing and holding bitcoin".

But of course, we still don't actually know when is this going to happen.

Related:

Comments

Latest news

Partial Solar Eclipse 2018
In case of a total lunar eclipse, Earth comes between the Sun and Moon's path, and blocks sunlight from reaching the satellite. Those who reside in areas where the eclipse will be visible, must be warned that they should not look at the Sun directly.

Man United vs Leicester City, Premier League
The u'sually busy Manchester clubs were relatively quiet this summer and Manchester United , in particular, had a really disappointing transfer window.

Jose Mourinho: I'm now a coach, not a manager
Or you believe in the pundits and go with what they say. "It was tough for Harry Maguire , he gave his best and had a good game". However, a move did not materialise and Mourinho must now work with the same central defensive setup as he did last season.

Zimbabwe presidential inauguration delayed amid court challenge
Under the constitution, a losing presidential candidate has seven days to challenge the result from when a victor is declared. Chamisa wants the constitutional court to declare him the victor or call a fresh election, it is reported.

Sony developing Jackpot and Silk movies for its Spider-Man universe
Silver & Black are headed to the big screen, too, but they've since been redirected to individual solo movies . We're talking about the Superior Spider-Man ... or as he's now conveniently called, the Superior Octopus .

Other news