Bitcoin tumbles below $6,500 on delayed SEC decision

Bitcoin tumbles below $6,500 on delayed SEC decision

The SEC postponed its decision on whether to approve the Bitcoin ETF, dealing a blow to bulls who had bet a green light from the regulator would help sustain last month's tenuous rally. This ETF is the only "physical" ETF which is now being analyzed by the regulatory agency.

This ETF was proposed back in June 20, 2018.

The VanEck SolidX Bitcoin Trust is still the most important ETF ever presented by the crypto world. Why? The first two have a combined daily trading volume of "approximately $150 - $200 million", the presentation details, reiterating that they are all regulated by the U.S. Commodity Futures Trading Commission (CFTC). There are multiple entities applying for an ETF and one of them is the exchange Cboe BZX, whose proposal was recently rejected by the SEC. ETF's are viewed by many as a way that can hasten the entry of institutional investors into play. The SEC is anxious about the effects that virtual currencies could have on individuals without important amounts of money.

Several applications have been lodged for Bitcoin ETFs so far, but still not a single one has been approved - yet. The first date to watch is August 10, which is 45 days since the Securities and Exchange Commission filed a notice on the proposal and when the time in which it would file a response runs out.

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The application received positive feedback, and the SEC later announced it was looking into newer, less stringent legislation that would make it easier to apply for open-ended ETFs. At the time of press, Bitcoin is down over 7% in the past 24 hours, finding some semblance of support at the $6,500 price level.

However, given the recent price plummet, it would seem that there is really need for much emphasis on bitcoin ETFs and a real need for a bitcoin ETF to be approved. However, considering the fact that the cryptocurrency market is notoriously volatile, there may be more drops in the future, before market recovery begins. She believes that the part of the SEC is to consider the market for the ETF, not the underlying asset itself.

The SEC's official note on the decision delay can be found here. The proposal by SolidX was turned down for similar reasons as the Winklevoss ETF proposal earlier in July.

While the well-respected technician did not give a clear price prediction for the price of Bitcoin, it has become apparent that the asset looks more bearish than it does bullish.