Why SEC’s Delayed not Denied Bitcoin ETF Decision Cleared $33 Billion off Crypto Market Cap
August 8th is already a bad day for Bitcoin’s value, which took a hit after the U.S. Securities and Exchange Commission (SEC) announced that it will delay its decision on a proposed bitcoin exchange-traded fund (ETF). If the decision is ultimately made in favor of the applicant, the ETF will be the first financial product of its kind.
VanEck and Solid X, a financial services company, filed the ETF application in early 2018. Their ETF is supported by bitcoins, rather than futures. As for the ETF itself, the investor need not purchase the underlying asset. Those who use ETFs may get into crypto investing in a safer manner, as opposed to purchasing bitcoin outright.
The SEC denied VanEck’s first ETF request. For this second one, the SEC’s announcement that it will postpone its decision on the new application causing cryptocurrency markets to fall – Bitcoin decreased 4 percent, leading its overall value to be around $9 billion. The SEC is expected to make a final decision by September 30th.
Even though bitcoin’s value has decreased, it can certainly rebound. The cryptocurrency is known to have fluctuating value. Further, there are other applications for an ETF filed at the SEC, so more decisions are sure to come.