The SEC rejected the Winklevoss ETF, but that wasn't the one that was expected to pass anyways.
On Thursday the SEC announced that they had rejected the Winklevoss bitcoin ETF application.
More about that can be found here:
https://www.cnbc.com/2018/07/26/winklevoss-twins-bitcoin-etf-rejected-by-sec.html
This marked the second time the SEC had rejected a bitcoin ETF from the Winklevoss twins.
The cryptocurrency markets reacted rather harshly.
After rallying significantly off the lows over the past two weeks, mostly related to rumors that an ETF may actually get approved by the SEC, bitcoin sold off about 6% from about $8,300 down to about $7,800.
Threatening to derail the entire newfound bullish trend.
However, the very next day, surprisingly, bitcoin rebounded rather significantly, all the way back over $8,200.
Why the recovery?
Mostly it was due to the fact that the ETF that has the best chance of being approved wasn't the Winklevoss ETF anyways.
It is the application from VanEck and the CBOE, companies that have vast experience in running successful ETFs.
Not only that, but they structured their proposed ETF in a way that alleviates most of the SEC's prior concerns.
In that regard, it almost looked like the selloff due to the Winklevoss ETF was mostly an emotional over-reaction.
Though, it does serve as a reminder that the VanEck ETF is also likely to be a long shot to gain approval as well.
(Source: https://medium.com/@WilliamClayton/these-arent-the-droids-you-re-looking-for-3b0f725f93c8)
My thoughts:
These aren't the droids (etfs) you're looking for...
Overall, I think the main reason prices are holding up is because whether the VanEck ETF gets approved or not, investors are starting to realize that it is only a matter of time before one does get approved.
The price appreciation that such an approval would likely bring is already starting to be priced in.
And they say that the cryptocurrency markets aren't efficient... That is precisely how efficient markets work.
Stay informed my friends.
Image Source:
https://www.bitstarz.com/blog/winklevoss-twins-bitcoin-etf-declined-by-sec-again
Follow me: @jrcornel
Can’t wait for the first ETF to e approved; then the sky is the limit!!! 💰💰💰💰
If the pattern is similar to what happened with gold, $20k will be cheap within a few years of a physically settled bitcoin ETF.
I think the markets reacted rather smoothly, as the hopes towards an ETF have likely been one of the main drivers of the recent surge. The dip will be much bigger if the Van Eck proposal gets rejected, so let's cross fingers.
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I agree, though I don't think the dip will take back all of the recent gains.
I was really expecting A good News About ETF.
As We were just waiting for a positive News Regarding ETF in Bitcoin because it Can Bring a good Pump In Its Price.
I have A Question For You sir.
Do You think That Bitcoin's Price Were Only Dependent On ETF.?
It's been a big part of the rally recently, but not all of it. Either way, I think a bitcoin ETF is coming in the near future, for that reason, even if the VanEck one gets denied, prices won't pull all the way back to where they were previously.
Ohh..
Its Sounds Good..
I Think There Are some More Aspects Which Can Bring A Good Rally Into It Like As We Can See Now That Most Of the Country are trying To regulate Crypto.
As Take An example Of Australia. There Are Most Of the Places Which Accept Crypto.
Sadness
When We talk About Some Bad Newses Indian Government is trying to Ban Crypto And i think this Is not good For A developing Country.
What's Your Openion On It?
I am not really sure what is going on with India. I do know that with something that is globally traded like bitcoin, it will be hard to ban it. I think they are just shutting down the local exchanges if I remember correctly?
Bitcoin is people’s currency. I don’t think it needs ETFs.
May be in shortterm the price might depend on them but we have had highs without these in the past.
As Fellow steemian posted bitcoin doesn’t need institutional investors, institutions need bitcoin.
Of course it does not need an ETF, but if we want institutional money any time soon, it most likely needs an ETF.
Why do we need institutional money?
For the price hike- possibly
Yes, that is exactly why. We don't technically need it right now for bitcoin to succeed, but it will certainly help the price go up.
Bitcoin will have an ETF someday.... everybody else does and wall street loves to hedge and gamble... thanks for the info ;9)
I agree. The allure of wallstreet firms to make money will be too strong for there not to be a product eventually. Too many people want to trade it.
I have to believe it's only a matter of time before there's a BTC ETF... after which it will only be a matter of time before there are more, followed by some of the larger coins out there.
For the time being, though, it seems like we live in the land of "As goes BTC, so goes the rest of the market."
I agree. There really isn't a need for many of the other coins out there currently though. If they are going to exist at all they probably are way over-valued currently, though bitcoin is probably way undervalued if it lives up to its potential.
@jrcornel news websites are just trying to create FUD.. our mail ETF is still to get a acceptance or rejectness..
We have to wait for our Real ETF for which we all are waiting.
By the way thanks for this great info.
I think the vast majority of them are just trying to attract readers. The more shocking the headline the more views they get. Some are purposely trying to manipulate for their benefit, but I bet it's not as many doing that as people think.
Some people said is post pone to September some people saying is declined what should I believe 🤔
Comments for the VanEck ETF are due by August 10th. We should hear something before then. Honestly most likely it doesn't get approved though, so be prepared. Though, eventually one will get approved.
I so much agree on this. If not this time it will be next one, such iterative process will eventually meet all SEC criteria.
We will always see hype amid an ETF decision, and I actually believe we would even see a dump after it gets approved. I don't think investors will jump day 1 to it, they will probably contact the ETF issuer, have some talks and so on.. it could takes weeks to see the big money flowing in.
Honestly I bet it happens almost immediately. There are so many people out there that would like a little exposure to bitcoin, but they don't trust the exchanges or holding the keys themselves. An ETF changes everything for them. There is a reason GBTC always trades at a 40%-70% premium.
I didn't know about GBTC, thanks for dropping that knowledge. I agree that there are many people hungry for that exposure, but given the amounts of money it would be poured into such ETF I don't know how fast it will be. Money loves speed and we can see it when they speak about an ETF, everybody goes to buy btc. Some people like it safe instead, some will consult, reconsult, then invest a little, then a little extra more...
The fastest the better for mass adoption, let's see how this plays out :)
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People just trade in emotions most of the time don't get into the details where as big investors take benefit of this opportunity
It's a matter of time, but the emergence of ETF can now give an impulse in the price of bitcoins, and it does not require the stockbrokers
People will trust the product more than they trust cryptocurrency exchanges currently.