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Bitcoin crashed to $ 6,342: why the Bitcoin ETF delay could still be positiv

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There is currently a lot to talk about in terms of cryptocurrencies. This is a new decision by the US Securities and Exchange Commission. It had announced that it intends to postpone its decision on the admission of exchange-traded funds (ETFs) on a Bitcoin basis. These are the applications of the companies CBOE, VanEck and SolidX. Unfortunately, this has led to an uncontrolled collapse of the crypto markets. This is visible in the red numbers of cryptocurrencies. Total market capitalization also fell from just over $ 250 billion to less than $ 230 billion in just 24 hours.

Over-reaction in Bitcoin and other crypto currencies

This strong market reaction is surprising. Many financial experts and crypto friends had already anticipated a shift. Already in July, Anthony Pampliano, co-founder and partner of Morgan Creek Digital Assets, expressed his doubts:

“There is much speculation surrounding the new decision on exchange-traded funds. But I do not think the decision will be made in the next 30 days or so. Many people are looking forward to it. “

In its public statement, the SEC explained its reasons for postponing it to 30 September. It said that the 45-day period would be extended to 90 days. This extension is necessary to properly assess the applications.

Why does the shift in the Bitcoin ETF also have something positive?

There are three reasons for this. The first reason is that the SEC appears to be taking public comment seriously about why exchange-traded funds should be authorized on a Bitcoin basis. By 6 August, according to the agency itself, over 1,300 public comments had been received by the SEC. It is likely that the SEC will use the extra time to pay attention to these comments.

Second, it is expected that the SEC will also include the announcement of the Intercontinental Exchange. This is about the foundation of the Bakkt platform, which I already reported. Bakkt is to offer a regulated stock exchange and a custody service by a well-known company. The lack of these two aspects was the reason for the previous rejection of the application by the Winklevoss twins. Thirdly, the public deviation of Commissioner Hester Peirce has provided much clarity. It turned out that not all Commissioners are against cryptocurrencies. Again, I had already reported. The current shift thus opens up a new window of opportunity for Ms Peirce to convince the other Commissioners.

To summarize, markets are currently overreacting. The shift was to be expected and is in truth no cause for alarm. Rather, it is positive to see and opens up new opportunities for a decent decision. Consider it this way: If the SEC were safe and wanted to reject the applications, they could have done so long and within the deadline.

Sources: SEC, Independent.co.uk, AMBCrypto, Pixabay

Author: Peter Joost – Source Post: https://www.kryptovergleich.org/bitcoin-kurs-abgestuerzt-auf-6-342-usd-warum-die-bitcoin-etf-verzoegerung-trotzdem-positiv-sein-koennte/

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