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Cryptocurrency enthusiasts can prove to be their worst enemy when it comes to an exchange-traded fund backed by Bitcoin.
The largest virtual currency has jumped 40% to more than $ 8,000 since the beginning of July. rises that a Bitcoin ETF could be approved by the US Securities and Exchange Commission within weeks.
It's more than a little ironic. The valuation, and the potential for volatility, was one of the main concerns that the SEC expressed in a January letter on the outlook for these funds after watching a currency hike higher than $ 18,000. The regulator has asked potential issuers to withdraw their application until they can answer their questions. However, rumors that a Bitcoin ETF may be near triggered price fluctuations, pushing the currency to $ 8,000 for the first time in two months.
"SEC does not want to add or influence a speculative bubble" Balchunas, a senior ETF badyst with Bloomberg Intelligence, said about the recent Bitcoin rally. "It's like a déjà vu, but I'm 10 times more pessimistic" about an approved fund
Rumors, Gossip
The latest episode of speculation seems to have come from the June 20 claim of Cboe Global Markets Inc. The SEC's authorization to register a Bitcoin ETF created by VanEck Associates Corp. and SolidX Partners Inc. Since then, the regulator has received a deluge of lobbying messages for the fund, cryptography fans badyzing the SEC rules decision by August. 10, August. 15, August. 16 or "by September."
Do not count on it. At least three other trade requests that want to list Bitcoin ETFs have been pending since January. The SEC said in June that it would be necessary to wait until September 23 and 15 to consider two rule changes – respectively concerning the ProShares and GraniteShares Bitcoin funds – and said last week that it would have to wait until September 21 to evaluate another change for several Direxion brand ETFs. He extended his considerations several times
However, the ETF industry certainly increases the pressure. Last week, VanEck responded to SEC questions from January, saying its fund would be "in line with the Commission's mission to protect investors." Bitwise Asset Management, which already runs a private crypto indexed fund, said said Tuesday seeks approval of a new ETF that would track the performance of the ten largest virtual currencies
The SEC did not immediately respond to a request for comment.
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