Bitcoin and cryptos hit as SEC stalls on ETF decision

Cryptocurrency values were falling on Wednesday after a delay by the US Security and Exchange Commission (SEC) kicked sentiment in the bits.

Bitcoin was down 3.4% or US$230, changing hands at US$6,486. At this level, Bitcoin’s total circulation was worth US$112bn.

At the same time, the price of Ethereum was 2.88% or US$10.95 lower at US$369, giving the digital currency a total worth of just over US$37bn.

The finance watchdog was due to decide whether or not to approve the first ever Bitcoin exchange traded fund (ETF), but, it has now postponed until the end of September.

This 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.

Several players have applied or are understood to be in the process of applying for permission to launch Bitcoin ETF, which would, in theory, make investing in cryptocurrency much more accessible to retail investors who could simply buy into the ETF.

The news was taken as a potential blow to the cryptocurrency market’s credibility. Indeed, perceptions are particularly sensitive to all matters relating to the regulatory environment in established financial centres such as New York.

“The selloff witnessed on Bitcoin continues to highlight how extremely sensitive the cryptocurrency remains to the ETF developments.

“Cryptocurrencies could receive a solid boost and end up becoming the main talking point across financial markets if the SEC approves a Bitcoin ETF in September.”

The analyst added: “Although the current trajectory for Bitcoin is tilted to the downside, the outlook could change if a Bitcoin ETF becomes reality.”

Story by ProactiveInvestors