Bitcoin (BTC) – Bitcoin suffered another assessment today as bears forced the price to fall below $ 6800. While the currency was recording a slight price rally after falling from $ 8200 to less than $ 7,000, news from the US Securities and Exchange Commission (SEC) delayed their decision on a Bitcoin ETF until September 30th.
Most investors and cryptocurrency enthusiasts were confident that the SEC would issue a favorable ruling on setting up a Bitcoin exchange-traded fund, despite Winklevoss's ETF Negro last month. However, today's news broke that the government agency had decided to postpone further a decision on VanEck's investment proposal for the creation of an ETF, putting the market back into turmoil. Despite the failure of the ETF proposal Winklevoss last month, the New York-based investment management firm was the first to set up a fund approved by the SEC. Now, this ruling seems to be caught in limbo while the regulatory agency continues to postpone the matter to a later date.
Speaking in a previous interview with CoinDesk, Geek Gurbacs digital asset strategy director VanEck was sincere about his company's ability to create the first cryptocurrency ETF,
"Unfortunately, I do not know the answer. that we have addressed issues related to the structure of the market and this is an opportunity for regulators to bring bitcoins into existing frameworks and protect investors. "
In addition, Gurbacs affirmed his company intends to create a product that meets the needs of institutional investors, as opposed to the retail market that dominates the investment side of the cryptocurrency,
"Today the bitcoin markets are still 90-95% retail and institutions look for a way to enter these markets, then the physical ETF we have customized to institutions. "
While some have put in doubt the emphasis and the need for funds governed by the government, VanEck is confident that such a move will bring improvements to the cryptocurrency industry. Wall Street and institutional investors have so far avoided plunging into the cryptomarkets, due to the volatility and lack of exchange security, in addition to the murky legislation surrounding the investment vehicle. ETFs provide greater certainty to these companies, as well as revealing a path to greater security and best practices in relation to the management of the emerging crypto asset class.
Given the severe price movement following the SEC's delay, Bitcoin investors around the world are hanging on the news of ETF approval. In July, the co-founder of Bitmex, Arthur Hayes, boldly predicted that the price of BTC will reach $ 50,000 by the end of the year in the case of an approved ETF. The anticipation has caused erroneous prices in the market, with underlying technology and adoption that have little to do with fluctuations in value at the moment.