The US financial regulator SEC rejects Bitcoin ETF however market reacts completely opposite the next day. See Bitcoin fundamental analysis.
13 March, AtoZForex – On Friday, the US Securities and Exchange Commission (SEC) has denied the application to list Bitcoin ETF. The initiative could result in the first US exchange-traded fund built to track Bitcoin.
Bitcoin fundamental analysis
The idea came from investors Cameron and Tyler Winklevoss. They have been trying to convince the US watchdog for more than three years to bring Bitcoin ETF to market. However, the SEC has rejected the suggestion.SEC rejects Bitcoin ETF and the Bitcoin loses ground to gain it back. Bitcoin has initially plunged about 18 percent almost immediately after the decision. Later, it has rebounded.
Earlier this month, the cryptocurrency has spiked to the record value of almost $1,300, outpacing gold. Such trend was caused by the speculation that an ETF holding the Bitcoin could trigger the appetite for the digital currency. In the press release about the regulatory decision, the SEC has stated:
“Based on the record before it, the Commission believes that the significant markets for bitcoin are unregulated. The Commission notes that bitcoin is still in the relatively early stages of its development and that, over time, regulated bitcoin-related markets of significant size may develop.”
SEC rejects Bitcoin ETF – unchanged fundamentals
The US regulators have been concerned about the operation of the funds and whether the operations would function properly. The CFO of Digital Asset Services, Tyler Winklevoss, has commented:
“We remain optimistic and committed to bringing COIN to market, and look forward to continuing to work with the SEC staff. Moreover, we began this journey almost four years ago, and are determined to see it through. We agree with the SEC that regulation and oversight are important to the health of any marketplace and the safety of all investors.”
The Winklevoss twins have been largely investing in Bitcoin for a long time now. Moreover, there are two other Bitcoin ETF requests for listing, which are waiting for SEC approval. The applications are submitted by Grayscale Investments LLC’s Bitcoin Investment Trust and SolidX Partners Inc.
From Bitcoin fundamental analysis perspective the rejection of the Bitcoin ETF by the SEC is expected to put Bitcoin under pressure. However, the user base of Bitcoin is different.
Not like the Fiat Currencies, Bitcoin is limited. Therefore, each time Bitcoin price falls, investors often see it as an opportunity to buy. Therefor, I would not be surprised to see another Bitcoin high before the end of this week. This is indeed what we are facing at the moment. As you can see from the above given real-time Bitcoin prices, Bitcoing cyptocurrency price today is already making higher high compared to Saturday and Sunday.
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