Bitcoin rebounds despite SEC concerns. Expectations are growing for new verdicts on the Bitcoin ETF.
Bitcoin it returned above the $ 4.000 per unit mark after dropping to $ 3.600 last week in a depressive wave that effectively wiped billions of dollars off the market capitalizations of the largest cryptocurrencies. A rebound that occurred despite the head of the Securities and Exchange Commission (SEC) of the United States warned that a long-awaited fund on Bitcoin, to be traded on the stock exchange, is currently "unlikely".
Bitcoin's price gained nearly 10% in late November as investors and traders fought against a massive sell-off that has taken over the industry since Bitcoin Cash was the protagonist of a hard fork. Bitcoin's rebound then "moved" to most of the other major ones cryptocurrency, including XRP by Ripple and the Ether of Ethereum.
However, there are doubts about the future, so much so that some investors believe that what happened is a mere technical rebound. In particular, the president of the SEC Jay Clayton said that a lack of investor protection appears to be one of the main problems, and also one of the inconveniences that hinders the chances of your agency actually approving a Bitcoin ETF in the near future, also adding to fears that Bitcoin may be too easily stolen or manipulated on bags that do not have sufficient surveillance.
"What investors expect is that trading in the asset behind an ETF is meaningful trading, free from significant risk or danger of manipulation," Clayton told the Manhattan Consensus Invest Conference. "This kind of safeguard measures don't exist in many of the markets where cryptocurrencies are traded."
The SEC is currently considering whether to approve a request for Bitcoin ETFs presented through the Chicago Board of Exchange (CBOE) by VanEck based in New York, and the blockchain platform SolidX, although the hopes have been somewhat dampened recently by the fact that the SEC itself is delaying its decision, now expected by the end of December.
If approved, a Bitcoin ETF will mean that people will be able to buy Bitcoins without having to deal with bulky exchanges, which often struggle with non-transparent regulations and lack of public trust.
The whole cryptocurrency sector has been looking forward to a Bitcoin ETF since the beginning of this year, with expectations of institutional involvement in the cryptocurrency market that have contributed to strengthening the price for the whole of 2018. In recent months the fear has spread that the Traditional financial services firms may suspend their plans to offer Bitcoin products until global regulators take a position, leading the Bitcoin price to drop more than 80% from its all-time high.
In August of this year, the SEC rejected nine requests for a cryptocurrency ETF.
