Bitcoin Price Drops After SEC Delays ETF Decision
The U.S. Securities and Exchange Commission ( SEC ) announced yesterday that it will be delaying the decision on CBOE Bitcoin ETF to September 30. The SEC says that so far it has received 1300 comments on the ETF. Eduardo A. Aleman, an assistant secretary at the SEC explains this decision to delay the ruling. He said,
“Section 19(b)(2) of the Act5 provides that within 45 days of the publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or as to which the self-regulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved. The Commission is extending this 45-day time period.”
Soon after this was announced, the price of Bitcoin fell below $6000 and lost more than 6%. According to CoinMarketCap, bitcoin is currently trading at $6514.15 with a market cap of $112 billion.
Along with Bitcoin, this news has also affected other coins such as Ethereum, XRP, Bitcoin Cash and Litecoin. The overall market cap has lost over $20 billion in the last 24 hours.
It is clear that the latest announcement by the SEC has not been well received by the market. Jake Chervinsky, an American lawyer said that he had been studying and observing the crypto market and had predicted the extension and believes that the extension can further move to December 29.
Marouane Garcon, the managing director of Amulet that this decision was not a surprise to anyone. He added,
“In terms of the price, we’ve heard a lot of good news recently about Bitcoins future and its utility. I think the general sentiment around Bitcoin is still positive even in the wake of the SEC’s decision. If Bitcoin’s future was contingent on SEC approval then we’d be in trouble. News like this used to trigger a volatile uproar, so this modest decline in price only demonstrates asset and market maturation.”
Read more about Bitcoin ETFs here.