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The Paradox: Observers find that ETF speculation fueled the Bitcoin course more than a bit ironic. After all, the very high rating and high volatility of bitcoins were two of the SEC's top concerns in a January letter about the future prospects of these funds. Not long ago, the Bitcoin price had climbed to almost $ 20,000.
The US regulator has asked potential issuers to withdraw their application until they can answer their questions. Rumors that a Bitcoin ETF could be at hand again, have now triggered price fluctuations and Bitcoin rose for the first time after two months to more than $ 8,000.
"The SEC does not want to fuel a speculative bubble Eric Balchunas, senior ETF badyst at Bloomberg Intelligence, referring to the recent rally." It's like a déjà-vu, but I'm ten times more pessimistic " in terms of fund approval.
Recent speculation appears to have come from the CBOE Chicago Options Exchange's IPO on June 20 for a Bitcoin ETF approved by VanEck Associates and SolidX Partners. Since then, the SEC has received a barrage of communications aimed at putting pressure on such a fund.Crypto fans have even badyzed the SEC rules to provide various dates for a decision: August 10, August 15, 16 August or September.
Investors should not rely on it.At least three other trading requests wishing to launch Bitcoin ETFs have been pending since January.The SEC said in June that it would take time before August 23 and September 15 to review two rule changes – concerning ProShares GraniteShares Bitcoin funds.
And last week, he said that it would be necessary to wait until September 21 to evaluate another change for several ETFs under the Direxion brand. The SEC has multiplied its reflections.
However, the ETF industry is currently increasing the pressure. Last week, VanEck responded to SEC's January questions, saying its fund was "in line with the Council's mission to protect investors." Bitwise Asset Management, which already operates a private index encryption fund, said Tuesday it was asking for a new ETF to track the performance of the top 10 virtual currencies.
A spokesman for the SEC declined to comment, When the first regulated, exchange-traded cryptography fund arrives, it is still in the stars.
It is quite possible that the current revival of Bitcoin mania makes the SEC reluctant to approve it.
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