Cryptocurrencies had a tough day this Wednesday.
Every single digital currency among the 100 biggest names, classified by total market capitalization, traded in red at 17:00. EDT. By ordering the best-known crypto names, bitcoin and Ethereum were down slightly more than 8% in 24 hours and Ripple had lost 15% of its market value. Ethereum Classic has lost all the big gains of this Monday and then some, falling by 13% at the time of writing this article. The best performance in the first 100 was the Tether coin, which was designed to track the value of the US dollar as close as possible.
The cryptocurrency market now has a total value of $ 219.3 billion, according to Coinmarketcap. This is 13% lower than the total market value 24 hours ago. Digital currencies are prone to wild oscillations, but this has been an incredibly coordinated turn of epic proportions for this corner of the financial world as well.
So let me tell you what happened today.
This cryptocurrency ETF will have to wait
The Securities and Exchange Commission was examining an application to launch the first fund traded on the market with an exclusive focus on holding cryptocurrency tokens, deposited on June 20 exchange BZX Cboe (NASDAQ: CBOE) . The proposed ETF, which would be known as SolidX Bitcoin Shares, would require a modification of the SEC's market listing rules. This change of rules has been submitted to the SEC microscope since July 2nd, collecting more than 1,300 public comments along the way.
Today's large crash of cryptocurrency has been triggered by the extension of the rule rule from 45 days to three months. The final sentence was expected in a couple of weeks, but will now be postponed until the end of September.
The SEC could soon make a decision before that, but viewers do not hold their breath while they wait for that to happen Therefore, a long-awaited move that could give legitimacy and stability to the restless crypto-market will have to wait another two months . Patience is a scarcely present virtue on this side of the tracks, so every coin has taken a big step back in the news.
Does this change in the rules really go anywhere?
This is not the first attempt to obtain an ETF cryptocurrency on the normal stock market, and the late decision could in fact be a step towards rejection. Two weeks ago, the Winklevoss twins saw their application to start a bitcoin-specific ETF rejected by the commission itself – for the second time. The SEC is not in a hurry to open the door to cryptocurrency trading on proven and true ETF securities and trades.
Legislators are concerned about market manipulation, fraud and weak investor protection. One commissioner disagreed with Winklevoss's July rejection, arguing that the necessary modification of the rules actually works according to the laws and legal guidelines available. Indeed, Commissioner Hester Peirce was "worried that the Commission's approach will undermine investor protection by foreclosing greater institutionalization of the bitcoin market".
In other words, there is a support background for trading cryptocurrency tools within the SEC today, which could
But today the cryptocurrency community is taking care of one other hurt her dream of joining the most legitimate markets.
Anders Bylund has no position in any of the stocks mentioned, but he has some tokens of bitcoin, Ethereum and Ripple. He has no interest in any of the other cryptocurrencies mentioned. Motley Fool recommends Cboe Global Markets but does not hold any financial interest in any of the cryptocurrencies mentioned here. The Motley Fool has a disclosure policy.