The current state of the cryptocurrency market has further plummeted following the US SEC (Securities and Exchange Commission) ruling to postpone the highly anticipated CBoE Bitcoin Exchange Traded Fund (Bitcoin ETF) until September 30th,2018. This ETF announcement by the SEC immediately sent the volatile crypto market prices lower and a consequent dip in prices of digital assets.
In a near instant reaction to this news, the cryptocurrency market shed about $20 billon from a daily high of $257 billion to an approximate low of $236 billion and Bitcoin price immediately dropped from daily highs of $7,100 to a low of $6,550 few hours after the SEC’s declaration. This decision to extend its ruling comes a few weeks after the SEC also denied the Winklevoss twins Bitcoin ETF application on July 26 2018 which it attributed to the unregulated nature of the market at the time.
For many conversant with the SEC’s antics and policies, this comes as no surprise; as the SEC had before now frequently delayed ETF rulings from emerging markets. In its official statement, the SEC is quoted as saying;
“Accordingly we as a commission designate September 30 2018 as choice date which the commission shall either approve or disapprove, or make due provisions to determine whether to disapprove the proposed rule change”.
The SEC also stated that in accordance with quoted federal law; its right to extend approval or disapproval injunctions within 45 days or for longer periods up to 90 days on proposed rule change. Hence, it comes as no surprise its decision to apply this franchise on the Bitcoin ETF ruling with regards to the new nature of the Bitcoin markets and regulatory clamps around its utility.
In same vein, the past weeks have seen a relative dip in altcoin markets with only a few alts staying afloat amidst the bear market and increased Bitcoin market dominance. It is yet to be seen if this ETF declaration and more FUD would have a far bearing effect on cryptocurrency prices in coming days or as many crypto enthusiasts opine,the ETF approval will enhance the call for mass adoption of cryptocurrencies as investment and financial instrument.