Bitcoin price analysis: BTC/USD crashes to $6,556 as SEC postpones VanEck verdict

Adjust Comment Print

As CCN reported, the bitcoin price has endured a precipitous decline over the past several weeks, with analysts primarily attributing the movements to the growing realization among retail investors that the U.S. Securities and Exchange Commission (SEC) is unlikely to approve a bitcoin ETF this year.

The fund the US SEC is considering is from the investment firm VanEck and the financial services company SolidX Bitcoin Trust, which will list on the CBOE BZX Equities Exchange. The first date to watch is August 10, which is 45 days since the Securities and Exchange Commission filed a notice on the proposal and when the time in which it would file a response runs out.

Responding to concerns relating to custody, VanEck pointed that its ETF will not invest in physically settled bitcoin contracts, however, it could participate with market players to decide on a solution to satisfy direct custody requirements.

The application was made by VanEck and Solid X and it comes after the SEC's recent rejection of a Bitcoin ETF application made by the Winklevoss twins, Tyler and Cameron.

More news: Google Makes Embarrassing Error Following Fortnite Android Release

"Accordingly, the Commission ... designates September 30, 2018, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change."

This is VanEck's third attempt to push a bitcoin ETF through.

The American Securities and Exchange Commission (SEC) is now in the process of deciding whether they want to accept or reject an number of different Exchange Traded Funds (ETFs). Instead, Canaccord argues that the Bitcoin ETF decision is being postponed because the SEC still wants to clarify a number of regulatory issues.

Should the SEC give the trading of SolidX Bitcoin shares the nod, it's regarded as a notable step forward in mainstream acceptance of cryptocurrencies, although there's still clearly a lot of road ahead. The SEC however announced to delay the decision until September 30. "The SEC has been very cautious with an ETF". Ethereum also lost around 8% to sink well below the $400 level which is a psychologically significant mark and was trading at around $370 at press time - again a level not seen since 2017.

More news: Human case of West Nile Virus reported in Cascade County

In an official report entitled " Blockchain and Digital Assets: US Equity Research, " Canaccord researchers Michael Graham and Scott Suh have now written that a Bitcoin ETF in the US is expected to arrive in 2019.

What's Your Thought On This?, Let Us Know In the Comment section Below.

Need to calculate your bitcoin holdings?

More news: Trump authorizes doubling of tariffs on Turkey's steel, aluminum