SEC Postpones VanEck Bitcoin ETF Decision Until End of September 2018

SEC Postpones VanEck Bitcoin ETF Decision Until End of September 2018

Nonetheless, Bitcoin has still fallen through the ever so important support at $6,800, which is a price level that Bart Smith of Susquehanna has mentioned on multiple occasions as a vital line of "defense" for Bitcoin technicals.

Responding to concerns relating to custody, VanEck pointed that its ETF will not invest in physically settled bitcoin contracts, however, it could participate with market players to decide on a solution to satisfy direct custody requirements.

The fact that Bitcoin's dominance in the cryptocurrency market is now up to 48.8% also spells bad news for the market as it indicates that investors are pulling out of altcoins and into Bitcoin, after which they could be converting their funds into fiat currencies.

Just as Fundstrat's Tom Lee assures the bitcoin community that the currency is "returning", the world's largest cryptocurrency by market cap incurred a massive fall and is trading for just over $6,300.

Bitcoin was down 3.4% or US$230, changing hands at US$6,486.

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Although the ETF decision is exclusively in regards to Bitcoin, many alt coins are showing worse losses than the world's largest cryptocurrency by market cap.

The developments come after the SEC (U.S. Securities and Exchange Commission) delayed a decision on a proposed Bitcoin ETF (Exchange-traded Fund).

If this third proposal is ultimately approved, VanEck will market the new ETF while solid X will sponsor and create an underlying index, with the Bank of New York Mellon will serve as the custodian. Its market capitalization is $112 billion dollars. There's no reason for us not to allow this product to go ahead and trade on the exchange therefore i would have let it go forward whereas my colleagues believed that it should not go forward. The news dispels months of potential optimism for Bitcoin price and other coins, as investors held out that a positive ETF ruling could give a big boon in a bear market. "People get excited about the price and overreact", said Morehead, whose investment firm has recorded a lifetime return of about 10,000 percent. "A properly constructed physically-backed bitcoin ETF will be created to provide exposure to the price of bitcoin, and an insurance component will help protect shareholders against the operational risks of sourcing and holding bitcoin". "The former is better for pumping price, but the latter is much better for actual adoption".

But of course, we still don't actually know when is this going to happen.

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