The SEC delays decision on Bitcoin ETF, markets tank
The SEC punts, markets tank.
The Securities and Exchange Commission (SEC) decided to postpone their decision on the VanEck Bitcoin ETF at least until September 30, 2018.
The original comment date was set for August 16th.
This delay comes on the heels of a letter sent to the SEC detailing how this ETF proposal answered many of the concerns previously laid out by the SEC.
More about that can be found here:
https://www.ccn.com/van-eck-responds-to-secs-bitcoin-etf-concerns-in-new-letter/
The original application was filed in June along with the backing of finance heavyweight the CBOE.
The reason for the push-back?
This particular application had received over 1,300 comments from the community, roughly 13X that of the Winklevoss application.
It likely has to do with a provision in the Securities Exchange Act that allows the SEC to extend comment periods by 45 days if it decides it needs a longer time period to consider the application.
Such a push-back would get us to September 30th.
“Accordingly, the Commission, pursuant to Section 19(b)(2) of the Act designates September 30, 2018, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.”
(Source: https://www.ccn.com/us-sec-postpones-decision-on-vaneck-solidx-bitcoin-etf-to-september/)
This perhaps isn't the final decision date either.
According to the Exchange Act mentioned above, the SEC can extend its decision by up to 240 days from the date published in the Federal Register.
That would push things back to around March.
Yikes.
Prices take a beating:
The price of bitcoin is trading down around $6,200 currently, about $1,000 lower than where it was just a day or so ago before the SEC's announcement to delay their decision came out.
(Source: https://www.ccn.com/newsflash-bitcoin-price-drops-to-6180-as-market-hits-3-week-low/)
We could be in for some more cold weather when it comes to bitcoin and crypto prices for the time being.
Though, keep in mind this was not a rejection, just a postponement.
Stay informed my friends.
Image Source:
https://bitcoinmagazine.com/articles/sec-delaying-another-bitcoin-etf-decision/
Follow me: @jrcornel
Seems to me that the postponement of the CBOE ETF is not necessarily negative. It is unfortunate for BTC holders in the short term, but the negative price action is probably mostly bots and traders running with negative news.
It takes time to assess this stuff, I heard someone say recently, Gold didnt get an ETF till like Mar 2003.
Plus desperation around getting this ETF needs to be killed because frankly, crypto isnt great because it can be used in an ETF, the ETF is only great from a speculation trader perspective, if you are long on BTC, you are long on BTC, whether they launch an ETF or not.
Great comment. My thoughts exactly. This was merely a postponement, not a decline. Yet the markets are acting like it got rejected. That likely means a ton of short positions were put on and they are pressing right now trying to crash the markets.
I say yay. Let the skittish investors who don’t really understand cryptocurrencies momentarily tank the price so the savvy investor can buy low.
😩😖😩😖😖😩
@jrcornel ETF Delay till September
Posted using Partiko Android
Yes, I heard that somewhere
While the news may or may not have something to do with the price movement, looking at the 1D BTC/USD chart, it's still well in line with the movement that was happening well before the decision. It's slightly steeper that one might expect, but that's because it's reaching the previous bottom. It has a similar moment where it exceeds the surrounding Bollinger bands on every previous fall. It should stop around the previous low, or perhaps a bit lower. The fall is a perfect moment to sell and buy lower or set a buy-in.
To me this price action looks like shorts are leaning on prices, using the news as an excuse. After all, this was merely a delay not an outright rejection.
Regarding you views on the technicals, I guess you could say that, though it needed a catalyst to push it down to that lower range (and actually below it based on my chart), and this catalyst was a pretty weak excuse.
I definitely agree with you that it was a weak excuse. I thought it wasn't going to go down like this, then I looked at the charts after and it was right in line. Often when news appears to move crypto it seems like a lame excuse though. Then other times, when some major news hits that you think would affect it, it seems to not even flinch.
That is a good point. I think that is likely because of two things. One being that much of the trading takes place in Asia and perhaps news like ICE building out a crypto exchange wasn't seen as big of news to them like it does folks in the US. Secondly, I think the market movers are placing trades in the OTC markets. Which is why the big moves often happen hours or days after the big news comes out as the price action starts to trickle out into the public exchanges..
That's a good point.
Some of this news that we view as "good" might actually not be in some ways, as many new users are often a lot more affected by FUD.
I was super excited about Starbucks and eBay allowing you to use crypto in the future. The market didn't seem even affected by it though. Guess they don't see the future of people selling their shit for crypto and paying for their morning coffee with a blog post. Or they don't care, because they don't have as much of an effect in asia.
@jrcornel It was not a rejection but People came in panic and Market also came down.
But I hope it will recover soon
Yes, people sell, people panic, then more people sell. It feeds on itself.
Perhaps they were hoping something like this would happen to drive the price down and let institutional money get in cheaper...
We should be wanting them to buy as high of a price as possible so they will have an incentive to try and support as high of a price as possible.
A couple of thoughts:
A lot of people invest in crypto or use it for goods and services as a way to show their disgust for the current financial system. The issue is these same people (me included), are now hoping for an ETF which ultimately leads to the same powers that be assuming market control, it won't be instantaneous, but it will be incremental. Once institutional money enters in earnest then the market will become exactly like the stock market.
One can't help but think there were a few players that influenced the SEC's hand into delaying the decision while they start building their position. Interesting that Goldman and Dimon came out with negative statements coinciding with the SEC decision.
I see what you are saying. I am not sure it is that diabolical, though it may be. I wouldn't rule anything out when it comes to greed.
One thing to note... The original investors in bitcoin are mostly anarchists and guys who are fed up with the current financial system. Ironically, they need the old financial system and wall street to jump in if they want to see really high prices for bitcoin.
The anarchists started the trend, wall street will pick it up next via an ETF.
When people are afraid you should be greedy. Sadly I've got no funds to buy anything. Maybe in two weeks. Just praying there's no bounce back until then.
You and me both.
Well there seems no bottom at all right now everything sinking like hell !!!