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13 Oct 2019
1 min read

The SEC rejects another Bitcoin-based ETF

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Written by OspreyFX News Team

Once again, a publicly-traded fund, better known by its acronym ETF (Exchange Traded-Fund) in English, has seen a potential door closed in its face. The news comes from the United States’ Securities and Exchange Commission (SEC), who rejected the nomination, and not for the first time. However, this did not prevent Bitcoin and Ethereum from going up during the day on Thursday. In the last 24 hours, the price of the most popular cryptocurrency in the crypto sphere has risen by about 5%, while the latter has swelled by 6%.

The decision was announced unplanned for the financial markets, as this was communicated to the public after the closure of Wall Street. The company that had made this application to the SEC was Bitwise, whose proposal was perceived by the US stock exchange regulator as of poor design to prevent fraudulent or manipulative acts and practices, as they clarified in their statement.

This refusal by the SEC was surprising, because Matt Hougan, Director and Global Head of Research at Bitwise, had granted an interview to CNBC, where he expressed his optimism regarding the approval since he said that he believed they were “closer than never” to achieving it, check source.

However, the bias of Bitcoin cannot be explained solely by fundamental factors that affect the crypto space. The Federal Reserve has also announced its plan to inject cash into the financial market, to give banks liquidity and boost inflation. This is with the purpose of meeting objectives.

Regarding the plans of a Bitcoin-based ETF, immediate ideas for a nomination by another Fintech company have yet to be announced, as the recent declaration from the SEC sets a precedent for similar future plans to succeed in this matter.

Meanwhile, investors will be attentive to the dynamics of the US dollar across the board, taking into account the high volatility that has been demonstrated during the week, and which affects the price of the main cryptocurrencies in the crypto sphere. In addition, the Fed will remain in the spotlight regarding its flexibility plans, which, according to Joe DiPasquale, BitBull’s Chief Executive Officer, have historically favored Bitcoin.

 

 

 

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