Cryptocurrencies slumped Wednesday, with Bitcoin tumbling below $6,500 for the first time since July, after the US Securities and Exchange Commission postponed a decision on whether to allow the listing of an exchange-traded fund backed by the largest digital currency.
Morehead said that this hesitancy on the part of the SEC to approve a bitcoin ETF should not have come as a surprise and that investors should prepare to wait "quite a long time" if they hope to see one of these products trading on a regulated stock exchange. Morehead said that those investors have been overreacting to news that the SEC has postponed a decision on the proposed VanEck and SolidX ETF.
As of August 6, 2018, the Commission has received more than 1,300 comments on the proposed rule change. The agency can determine fate of the proposals 240 days after the publication.More news: Sam Allardyce: Manchester United's negotiations have broken down
A request by SolidX was previously denied by the SEC in 2017 attributed to the cryptocurrency's price volatility.
Issues identified in [the SEC's previous] disapproval order have been resolved.
The falling spread or difference between the total market capitalization of all cryptocurrencies except bitcoin and BTC's market capitalization is also signaling reduced demand for high-risk alternative cryptocurrencies.More news: Perseid meteor shower coming this weekend to a sky near you
"I think there's too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores".
The presentation points out that there have been major changes since the SEC made a decision to reject the proposed rule change for Solidx Bitcoin Trust in March a year ago. The presentation lists as examples CME bitcoin futures, Cboe bitcoin futures, Ledgerx bitcoin swaps and options contracts, and Cantor Exchange self-certified bitcoin swaps contract.
Generally, the U.S. Securities and Exchange Commission (SEC) has been hesitant in approving ETFs because of nascent assets and commodities. "A properly constructed physically-backed bitcoin ETF will be created to provide exposure to the price of bitcoin, and an insurance component will help protect shareholders against the operational risks of sourcing and holding bitcoin".More news: The Perseid meteor shower is going to be fantastic this weekend
Morehead also noted that current perceptions of a listless Bitcoin market are largely based on perspective and reminded viewers that Bitcoin prices are up "82 percent year-on-year, so it's still doing very, very well". Let us know in the comments section below.
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