Bitcoin Market Cap Falls by $9 Billion After SEC Postpones ETF Decision

Gladys Abbott
August 11, 2018

The organization has repeatedly postponed all decisions regarding such ETFs or outright rejected them.

The news triggered a market reaction, ultimately sending the total value of all cryptocurrencies down to $221 billion on Wednesday, its lowest level since November 2017. Second, it could be that bitcoin was also reacting to the OTC market, which exhibited unusual behavior that may have caused large sell orders to be liquidated. This became especially true after last month's denial of an ETF proposed by the Winklevoss Twins (and owners of the Gemini exchange). CEO Dave Nadig said a year ago he was sure that bitcoin funds were coming.

"It means that after a short pause the bitcoin could slide down to the nearest consolidation level close to $US6,200 mark, and even lower to $US5,800". Therefore, if the SEC accepts a Bitcoin ETF, it would be a positive step forward for the cryptocurrency industry which could even potentially pave the way for the mass adoption of cryptocurrencies. An ETF is the type of financial product that tracks the price of an asset and is listed on an exchange.

SEC's decision to postpone the verdict until September 30 worsened market sentiments.

The VanEck product was roundly considered to be more mature and developed than the Gemini founders' Bitcoin ETF.

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The main intention has been to offer an ETF to institutional and wealthy investors rather than to the general population. Some had argued that VanEck's proposal was more likely to gain approval thanks in part to plans for a high minimum share price that would discourage retail investors.

Will there still be a chance that we are going to see a crypto-related ETF soon?

During the interview, she was asked, "One of their [SEC's] concerns is that there may be price manipulation in bitcoin, the underlying asset, and what you are saying is that the SEC has no jurisdiction to look at the underlying asset, is that correct?" However, if there's good news to investors who firmly believe about the possibility of a Bitcoin ETF, now is actually a good time to purchase your Bitcoin.

Meanwhile, Bitcoin prices have fallen as news broke that the decision for the join venture of VanEck and SolidX to launch a bitcoin ETF will delayed by the SEC until the end of September.

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