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Bitcoin ETF And The SEC: Prepare For The Worst

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Bitcoin ETF

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.

  1. 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
  2. Another option would be set comfortable stop losses should anything happen due to an SEC announcement
  3. Learn to short BTC and ETH like the pros and head to BitMEX for some nonstop action
  4. Buy the Dip
  5. Completely cash out till after the SEC make an announcement
  6. 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.

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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.

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Bitcoin

Bitcoin Price Dumps Below $41,000 Amid Uncertainty

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Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.

Fundamentals

Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.

Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.

Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.

Last week on Thursday, cryptocurrency experts took notice of…

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Bitcoin

Bitcoin Price is in Consolidation Mode Despite Market Optimism Post-Fed Decision

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Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.

Economic Outlook

Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.

The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.

Additionally, the central bank indicated that three rate…

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Bitcoin Price Blasts $44K in Spectacular Surge as Spot Bitcoin ETF Approval Looms Large

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Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.

Fundamentals

Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.

According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.

Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…

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