Delay In Key ETF Decision Causes A Sharp Bitcoin (BTC) Price Drop

U.S. investment watchdog, the Securities and Exchange Commission (SEC), will soon make a key decision. That decision is on a Bitcoin (BTC) exchange-traded fund (ETF). It’s a new trading product that crypto companies plan to introduce to the U.S. market for the first time. Analysts believe that the approval of a Bitcoin ETF could potentially signal a long-term bull run. This would come as a welcome surprise ever since the market’s bearish cycle in recent months.

While the cryptocurrency market experienced a price surge recently (before the recent dip), crypto-asset investors are rather unhappy. They were upset that the rise took place over only a couple of days. They are nonetheless optimistic that the approval of a Bitcoin ETF will signal a significant rise of virtual currency prices, starting with Bitcoin, the foremost digital currency.

Bitcoin ETF Background Information

It would be a crypto-based financial instrument that tracks the price of BTC and lists on a cryptocurrency exchange. With the Bitcoin ETF, investors don’t actually have to purchase the underlying assets. Consequently, institutional investors consider ETFs as the safest way of investing in the crypto market. They do not care for buying cryptocurrency on an exchange.

VanEck Would Not Give Up

VanEck, an investment company, collaborated with SolidX, a financial services firm, earlier in the year to launch an ETF with BTC backing. The company wouldn’t throw in the towel in the unending struggle to see the SEC approve the financial product even after two failed attempts. Well, the SEC is not in a hurry to vote on the application until September 30th.

Today, the digital coin has fallen from previous highs late last year, dashing the hopes of many bulls in the market. Though, VanEck is a top contender in the race to a Bitcoin ETF as other applications are also awaiting an SEC decision. With the SEC shifting the date for the decision, it will enable other interested issuers to get their acts right before applying for Bitcoin ETF approval.

SEC Turned Down The Last Application

Earlier, the SEC turned down a Bitcoin ETF application by the founders of crypto exchange Gemini, Cameron and Tyler Winklevoss. The rejection gained global attention when the SEC commissioner openly criticized the investment watchdog for turning down the application.

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