The price of bitcoin is spiking on the back of the SEC reviewing a recent Bitcoin ETF application.
Bitcoin is currently changing hands over $6,700 per coin.
The highest level seen since early September:
(Source: https://www.coindesk.com/6700-bitcoin-price-charts-bullish-reversal-as-altcoins-surge/)
Though prices have pulled back ever so slightly off the highs at the time of writing.
What is causing the spike?
Like many times in crypto, it isn't entirely sure, though there is a very good guess as to what is causing the price rise...
The SEC made a surprise announcement yesterday afternoon that they are currently reviewing the 1400+ comments they have received on the VanEck/CBOE bitcoin ETF application.
Not only that, but they are open to receiving a few more comments from interested parties!
The news can be seen here:
https://www.ccn.com/sec-begins-reviewing-physically-backed-bitcoin-etf-will-examine-1400-comments/
You may recall that the original application was recently extended to September 30th for comment from the SEC.
Most people, myself included, assumed they would extend their decision at least one more time. Pushing the final decision out to March-April of 2019.
However, their surprise announcement yesterday may mean that they are going to make a ruling one way or the other sooner than originally anticipated.
(Source: http://intocryptonews.com/22577-the-sec-welcomes-your-comments-on-the-pending-bitcoin-etf.html)
However, that by itself shouldn't really be bullish.
The odds of the SEC approving the application are still slim at best.
Ok, @jrcornel, if the odds of approval are so poor why is bitcoin rallying?
My guess is that it has to do mainly with short covering.
Short positions were at an all time high going into this announcement.
They were betting that the SEC would either kick the can down the road or deny the application outright, with heavy emphasis on that first one.
Now that it is looking like the SEC may not kick the can, at least not fully, many shorts are likely covering in order to stay out of the way just in case it does get approved.
If it does not, they will put their short positions right back on and drive prices down once it is officially announced.
One could also conclude that the fact the SEC is wanting more answers to current questions and taking more comments could indicate that they are open to approving a bitcoin ETF after all, which likely increases the odds of one getting approved at some point.
Stay informed my friends.
Image Source:
https://www.ccn.com/sec-begins-reviewing-physically-backed-bitcoin-etf-will-examine-1400-comments/
Follow me: @jrcornel
The mere fact of entering into debate by the tendencies, either to the low or to the high of the Bitcoin, is interesting from the point of view of the value that can reach motivated to the inherencias of the entities. let's wait and see what happens, thanks for the information @jrcornel
I am not sure exactly what you are saying here, but you got it!
Resteemed :)
Cool, thank you.
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Well said brother!
Please do not spam.
Let’s get that ETF approved and rolled out! I can smell the Rally 👍💰👍
I always enjoy a good rally in the morning. Goes good with eggs and OJ!
I was wondering if this would happen when I saw they were reviewing it. My official position is that they will purposefully manipulate the market by approving an ETF right at the end of the year. Get all those free capital gains taxes once again.... except this time the money is coming from Wall Street so no one's going to be able to evade those taxes.
I maintain that the SEC is corrupt to the core. They don't care about market manipulation. They've already manipulated the market themselves several times.
I actually believe they do try to protect the average investor, though not always going about it the right way. Though I will be the first to admit that some Wall Street players seem to have close ties with the SEC. I hope you are right though, an ETF approved before the year ends would be nice!
Besides the joy of my mother's birthday on the day of the comment from the SEC, I like that there is more and more debate and contest surrounding the space. This is all good and well, but I want to know your thoughts on a longer timeline. Provided this is approved, what next? That's one thought but, the decision aside, I'm really curious about further down the line.
I think a physically backed bitcoin ETF will be huge for the price short and longer term. I am basing that opinion off of what happened to the price of gold after physically backed ETFs were introduced. It likely will bring in so much demand that it can't help but spill over into the spot markets as well.
Gold went up roughly 6X after gold ETFs were introduced, though likely all of that increase was not due to ETFs.
Some good info in here about it:
https://steemit.com/bitcoin/@jrcornel/new-bitcoin-etf-application-may-actually-gain-approval
I think that the FOMO generated by XRP caused most of the spikes in the crypto markets recently. BTC also and I think that this might have been the first time in history when an alt caused BTC to spike and not vice versa. Just my humble opinion.
Could be, though I doubt XRP had much to do with it. I tend to think that XRP only rallied as much as it did because the markets have turned decidedly more bullish as of late. If XRP had the same news a few weeks ago I think the price action is much more muted.
Bitcoin will get that etf. Maybe not now but sooner rather than later.
Yep, I think we have one for sure by middle of 2019, likely sooner.
Certainly a better approach to hear from the SEC. I think they are coming to realize the immense interest in these products and that they could potentially risk letting this interest go offshore where they can influence regulation even less. Therefore, they may prefer to buckle down and establish guidelines on how to create a proper framework to ensure that investors are protected. And in all honesty, who would argue against that?
Not I, certainly not I. There is so much demand the SEC will approve one at some point, though I think they would prefer to wait. They may be pushed to approved this VanEck one by Q1 of next year whether they really want to or not.
Now imagine what will happen when it gets approved!!
I'm betting on a spike to reach immediately $10K...
I could see that as well. We would gap up about $1,000 -$1,500 immediately when the news drops would be my guess.
Exactly!
I would prefer that not to happen, and would go up slowly, but markets work a lot around speculation and fear. So that will probably happen.
Shorts will get liquidated and prices gap. Will be fun to be a part of!
There is still an enormous potential in Bitcoin. Everyday new coins are mined and added to the market, but dispite that, it still holds up the price above 6k per Bitcoin easily
Even with its inflation, it is still less than most fiat currencies.
even little recovery in prices now fill me with happiness hahah
An ETF will get approved eventually. It's only a matter of when, not if.