On Wednesday, the Securities and Exchange Commission chose to delay its decision regarding the proposed Bitcoin exchange-traded fund by VanEck and Solid X. The organization has repeatedly postponed all decisions regarding such ETFs or outright rejected them.
Over $9 billion has been completely erased from the cryptocurrency space, and it appears bitcoin isn't alone in its descent.
Should the SEC give the trading of SolidX Bitcoin shares the nod, it's regarded as a notable step forward in mainstream acceptance of cryptocurrencies, although there's still clearly a lot of road ahead.
The decision follows a second rejection by the SEC of the Winklevii Bitcoin ETF application, which was delivered on July 27th. This bitcoin ETF has received a lot of attention from the crypto community.
The regulator denied an exchange's request to list a similar fund run by Tyler and Cameron Winklevoss late last month. With a total of ten bitcoin-related funds weighed by the SEC officials, the VanEck-SolidX bitcoin ETF is the sole "physical" ETF among all other proposals. To do so would, though, require a rule change from CBOE Global Markets Inc for that to happen, and that's what the SEC has been mulling over.
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An ETF is a form of investment that tracks the performance of a basket of assets or a given index.
Following Bitcoin's trend, Ethereum prices also plunged to 4-1/2 month low, following the general pessimism created by SEC's postponement of its pending decision on Bitcoin ETF, which is seen to have affected the altcoins as well. The presentation also claims that existing bitcoin investments do not provide investors with sufficient protection, naming GBTC and XBT Provider as examples. An ETF offering was to further legitimize BTC and cryptos to the investing public. Instead of pushing the proposal aside altogether, the SEC voted to garner opinions from industry professionals, as well as publish the company's application for public comment.
The market has been waiting for a long time for a regulated ETF product to hit the market as traders believe it will bring new money into the market. Bitcoin was down by at least 8% to the $6500 level after easily slipping through the $6800 support level, although turnover was well up to the $300 million levels, the price crash was one of the most substantial of recent weeks.
But of course, we still don't actually know when is this going to happen.