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It is not surprising that Bitcoin – and crypto-currencies in general – has been suffering since the big explosion of late 2017. Traders, new investors and viewers all expect too much of the world's first digital badet, which could be saved by Bitcoin ETF approval. Remember, bitcoin has gone from less than $ 1,000 to $ 20,000 in record time.
Since then, the price of badets has steadily declined to an average of USD 3,000, well above the original price of USD 1,000, to be fair. This is partly due to the lack of regulation for US officials, the failure of network upgrades, the scarcity of large investors, and more. It turns out that prices will go down a little bit.
Government failures
Due to the recent closure of the US government, the cryptocurrency market is at a standstill. This led to the withdrawal of a Bitcoin proposal in Exchange-Traded-Fund (ETF) made by CBOE BZX, a cryptocurrency exchange. Unfortunately, this delay will prevent more investors from entering the world of digital badets.
A Bitcoin ETF would allow the currency to trade on the stock exchange just like a traditional stock. This confers legitimacy and security, which investors expected before getting involved. According to a recent Bitwise study, 58% of investors said they were waiting for Bitcoin ETFs, so they preferred to invest in the market.
Read: What is an ETF Bitcoin?
The government has been tough with all the proposals of Bitcoin ETF. The CBOE proposal is "backed by VanEck – an investment company – and SolidX – a financial services provider". Governments oppose the adoption of such an idea because digital badets, especially Bitcoin, are extremely vulnerable to manipulation and market volatility.
The United States Securities and Exchange Commission (SEC) has announced this withdrawal in a recently filed document. They attributed the cause to the closure of the US government. Fortunately, this change did not have much effect on the price of Bitcoin – although it dropped slightly – and is close to the $ 3.5K price level reached in January.
Looking to the future
Despite the withdrawal of CBOE, the stock market is already planning its reapplication. Part of their decision was due to all SEC members who simply did not come to work because of the closure. Some of these officials were fans of the proposal, while others are not in the idea. That does not mean that the decision deadline was coming soon anyway
VanEck CEO Jan van Eck commented on the decision via CNBC:
"The closure affected the US SEC, we engaged in discussions with the SEC regarding Bitcoin issues, market manipulation, pricing, conservation, and that had to stop. So, rather than trying to fall asleep or something like that, we just had to withdraw the request and we will re-register and re-engage in discussions when the SEC leaves. "
In an additional statement, CBOE lamented the terrible moment set for the delay and closure of the government. They are not too worried, however, thanks to the opportunity to reapply. The group is eager to talk to the US SEC early enough.
Mati Greenspan, Senior Market Analyst at eToro, sent an e-mail to his clients regarding the proposal. He said the idea of CBOE was very unlikely to be approved. This is partly due to comments from SEC Chairman Jay Clayton on the market. Clayton says the market as a whole is too immature for a Bitcoin ETF. He attributes this to low prices in recent years and all the volatility observed since the big explosion at the end of 2017.
Anyway, the approval of Bitcoin ETFs could be precisely what the market needs to recover. With such an interest in digital badets, increasing accessibility is a fantastic way to involve more people in the market.
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