Connect with us

Bitcoin

Here Is How The Bitcoin (BTC) ETF Saga at the SEC Is Just Getting Started

Published

on

Bitcoin

For most of us, learning that there are several filings of Bitcoin ETFs at the SEC was exciting news. This meant that there is indeed a chance that Bitcoin would be considered a worthy investment option through an ETF (Exchange Traded Fund). The most popular filing at the SEC is the highly anticipated CBOE sponsored ETF by VanEck.

Many crypto-enthusiasts are hoping that a decision will be reached by the SEC this August. Others believe that it will be postponed by another 45 days or even a year. But the recent rejection by the SEC of the Bats ETF sponsored by the Winklevoss twins shook the crypto markets for a while for many traders thought it was the CBOE ETF. What then happened is that one of the SEC commissioners publicly dissented from the verdict to reject the ETF. This was a bold move that earned her the Twitter nickname of ‘Crypto Mom’.

Commissioner, Hester M. Peirce, also known as ‘Crypto Mom’, stated that:

“I am concerned that the Commission’s approach undermines investor protection by precluding greater institutionalization of the Bitcoin market. More institutional participation would ameliorate many of the Commission’s concerns with the Bitcoin market that underlie its disapproval order. More generally, the Commission’s interpretation and application of the statutory standard sends a strong signal that innovation is unwelcome in our markets, a signal that may have effects far beyond the fate of Bitcoin ETPs.”

This is a clear indication that cryptocurrencies and blockchain are winning some support from regulatory authorities in the US. Also to note is that we will have 2 new commissioners at the SEC by the end of this year. This means there is a big chance of a total change in opinion with regards to any Bitcoin ETF that will be pending in their files by then. The CBOE sponsored VanEck ETF, now has a possibility of being passed for it is also being backed by a solid exchange: the CBOE.

The VanEck firm also publicly protested the rejection of the Winklevoss ETF. VanEck detailed response included a 13-page script complete with detailed graphs and charts. In the protest, the VanEck firm stated that:

“We believe that our proposed ETF will operate consistent with the rules and requirements of the 1940 Act. Further, by offering investors exposure to bitcoin through a regulated investment product, we believe the proposed ETF will be consistent with the Commission’s mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”

In a nutshell, the current happenings due to the filings of Bitcoin ETFs at the SEC are a tip of the iceberg of what we will see during the second half of 2018. The next few weeks and months will be an exciting time as proponents for crypto investment instruments battle it out with SEC for recognition. Hopefully, there will be a Bitcoin Bull run to spice things up even more.

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

Bitcoin Price Could Get Extremely Ugly – Barrons

Published

on

By

Bitcoin (BTC/USD) price recent rebound has faded and its easy to see why. After soaring to a two-month high of $21,470, Bitcoin has pared back some of those gains to trade at $20,895. This decline is mostly because of the fundamentals and technicals of the coin as I will explain below.

Bitcoin Fundamentals

The main fundamental reason why Bitcoin is pulling back is the rising fears of a recession. A recent survey by WSJ placed the risk of a recession in the US at 61%. That is notable since it is the highest the figure has been in months. 

At the same time, Wall Street banks like Goldman Sachs, Citigroup, and Wells Fargo published weak financial results. Most of them said that their profits tumbled by more than 30% in the final quarter of 2022. Reading between the lines shows that most of them have allocated millions of dollars in credit loss provisons.

Historically, these provisions tend to rise when there is a fear of a recession. At the same time, many safe American companies have starte announcing substantial layoffs recently. Amazon is laying off 18,000 people while Microsoft, Salesforce, Meta Platforms are laying off thousands of workers. In a note, an analyst at Oanda said:

“Bitcoin prices are weakening as growth fears have Wall Street worried a…

Continue Reading

Bitcoin

2 Reasons Why Bitcoin Price is Soaring in 2023

Published

on

By

Bitcoin price has staged a strong comeback in 2023 as investors rushed to buy the dip. The BTC/USD exchange rate surged to a high of 21,465, the highest level since November. It has risen by more than 30% from the lowest point in 2022. Here are the top reasons why BTC price is soaring.

Mild recession hopes

Bitcoin and other financial assets like stocks and gold have rallied because of the falling inflation in the United States and around the world. Consumer inflation dropped from 7.1% in November to 6.5% in December. Core inflation dropped to 5.7%. 

And on Wednesday, data from the US showed that wholesale prices dropped by 0.5% in December, higher than the expected 0.1%. The producer price index (PPI), rose by 6.2%, the lowest level since March 2021. This decline happened because of the falling energy prices.

Another data showed that retail sales tumbled in December. They dropped by 1.1% in December, the biggest decline in 2022. In a note, an analyst at RSM said:

“The lag impact of elevated inflation weighs heavily on U.S. households, it’s very clear that the median American consumer is still reeling from the loss of wages in inflation-adjusted terms.”

A recession is often seen as a bad thing. But in the financial assets, it can be seen as…

Continue Reading

Bitcoin

Bitcoin Price is Getting Severely Overbought: Is it a Buy?

Published

on

By

Bitcoin price made a spectacular comeback in the past few days as investors reflect on encouraging data from the United States. The BTC/USD exchange rate surged to a high of $21,365, the highest point since November. It has risen by more than 35% from the lowest level in November. So, is the tide turning?

Will the Fed pivot?

Bitcoin and other global assets continued surging as investors reacted to the latest American economic data. Data published last week revealed that the American consumer inflation inched downward in December. It dropped to 6.5% in December, the sixth straight month of decline.

A week earlier, data by the Bureau of Labor Statistics (BLS) showed that the country’s unemployment rate dropped to 3.5% in December. In the same period, wage growth increased by 4.7%, lower than the previous month’s 5.2%. A decline in wage inflation is a positive sign for Bitcoin and other financial assets because of the Federal Reserve.

The Federal Reserve has been in a strong tightening phase in the past few months as it continues its battle against inflation. Its goal is to soften the economy and prevent a hard landing. Such a situation will happen when wage growth eases. 

Therefore, Bitcoin has risen because of the rising chances that the Fed will start to pivot. Historically, Bitcoin and other…

Continue Reading

Press Release