September 30th is what many crypto traders and enthusiasts have marked as their D-Day. This is due to the fact that the SEC is meant to rule on the CBOE sponsored Bitcoin ETF by that date. The question on many crypto enthusiasts’ minds, is whether we will see a rejection or if the SEC’s rules have room for another postponement. But with the current Bitcoin (BTC) and general crypto market decline in the last 24 hours, it is safe to conclude that the SEC will also play it safe by not approving an ETF anytime soon.
Anthony Pompliano, Founder and Partner at Morgan Creek Digital, tweeted about the current events in the crypto space. He stated the following:
“Want to know why there isn’t a crypto ETF approved yet?
We just saw $100 million of Bitcoin dumped on the market in less than 10 minutes.
It caused more than a 5% decline in BTC price. Some argue volatility, others argue manipulation.
The truth is no one knows.”
The Mandate of the SEC
Given the last few hours of the crypto market turmoil, it is a good exercise to remind ourselves what exactly the SEC does. The full title of the authority is the U.S Securities and Exchange Commission and they are tasked with protecting American investors from market volatility and unfair practices by those with the leverage to do so in the traditional stock markets.
The SEC’s Mission is:
“To protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”
It cannot get any clearer as to what the SEC is tasked with doing. With many crypto portfolios of HODLers dropping by an average of 20% in the last 24 hours, some wish that the SEC had a reach to investigate what just happened in the said time period. But with crypto being decentralized and the United States yet to issue concrete regulation within its jurisdictions, the SEC trying to regulate crypto is like a soldier going to battle with a broomstick! They simply have no laws or rules to work with.
Bitcoin ETF on September 30th?
Many crypto traders have marked their calendar for the SEC deadline of September 30th to make a ruling on the CBOE sponsored Bitcoin ETF. Many hope that by that time, the SEC would have changed their tune of constantly rejecting Bitcoin ETFs on their ‘in tray’.
Prepare for the Worst
Therefore, it would be prudent for many crypto traders to prepare for the worst as we head towards that deadline. A few plausible options are outlined below. Please note that we are not financial advisers. We are observant enthusiasts like you. All the choices below are dependent on individual risk tolerances. Therefore, there is no pressure to abide by any.
- Keep HODLing despite the recent happenings with a 10 to 20-year vision that the crypto market will grow to be valued in the trillions of dollars
- Another option would be set comfortable stop losses should anything happen due to an SEC announcement
- Learn to short BTC and ETH like the pros and head to BitMEX for some nonstop action
- Buy the Dip
- Completely cash out till after the SEC make an announcement
- Totally ignore all the above options
In conclusion, the fact that Bitcoin and other cryptocurrencies are bleeding in the markets is one more reason the SEC might not approve a Bitcoin ETF anytime soon. Perhaps what they might end up doing – given the mission statement provided above – is lay the groundwork for total crypto regulation in the US. This way, if there was indeed an ETF backed by Bitcoin, then the latter would not be subject to possible manipulation as many have suggested has happened in the last 24 hours.
For the latest cryptocurrency news, join our Telegram!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pexels
Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC
The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.
The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.
Musk’s Tweets also impacted Dogecoin’s price
Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.
He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.
But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…
XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.
The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.
NFTs are already being actively traded in markets globally. For…
Wisebitcoin Launches Professional-Grade Crypto Exchange
Infrastructure is developing rapidly in the cryptocurrency industry, but the recent launch of the Wisebitcoin cryptocurrency exchange is nonetheless significant in terms of the immediate value it provides to cryptocurrency users. That’s because the exchange has had a beta version available since 2018 while continuing further developments in stealth mode, and already serves over 1.2 million end users with $6+ billion in 24 hour trading volume at the time of its official launch.
In addition to the large user base and deep liquidity, Wisebitcoin also stands out by offering up to 100x leverage to margin traders, with the ability to open a long or short position in their futures market. In the current bullish environment, leverage is a key way that experienced traders increase their exposure and try to profit from volatility.
For example, if a user opened a long position on ETH on January 2nd at a price of $750, they could have greatly multiplied their profits with even a small amount of leverage such as 5x as ETH reached over $1,100 within 48 hours. A simple unleveraged position would have netted $350 in profit, but a 5x position would have netted $1,750 and a 100x leveraged position would have netted an incredible $35,000 in profits from an initial investment of just $750.
Beyond leverage, Wisebitcoin additionally offers a simple and…