UPDATED 22:09 EST . 12 AUGUST 2018 The price of bitcoin recovered slightly at the weekend after a tumultuous week that saw its price drop to one month lows of nealy $6,000 on Saturday off the back of a U.S. Securities and Exchange Commission decision to delay consideration of a bitcoin exchange traded funded.
An ETF is a tradable security that tracks an index, a commodity, bonds or a basket of assets like an index fund. In the case of a bitcoin ETF, the security tracks the price of bitcoin to the U.S. dollar.
The idea has been floated a number of times previously but has always hit a wall with the SEC. SolidX Bitcoin ETF, the Winklevoss Bitcoin Trust ETF and the Grayscale Bitcoin Investment Trust were all rejected by the SEC in 2017 while in January, the Direxion Shares ETF Trust, Exchange Listed Funds Trust and ProShares Trust all withdrew their applications following discussions with the SEC. To their credit, the SEC has always been consistent with their concerns over ETFs covering bitcoin, in that bitcoin markets are not regulated, or more specifically they hold “concerns regarding the liquidity and valuation of the underlying instruments,” that is, bitcoin.
The Cboe ETF proposal was the latest in line and was meant to address those concerns, be it primarily by having the backing of a respected, licensed exchange. The SEC has not rejected the proposal outright, saying only that they have decided to delay making a decision on the application until Sept.
30 so as to give themselves more time to consider the application. That said, investors believed it would be approved and had already priced the approval into bitcoin’s price, the delay causing the price of bitcoin to slide again after sitting at around the $7,000 mark. Read more from siliconangle.com…
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