The price of bitcoin fell as much as five percent at the end of June and briefly dipped below $30K (where it had been for the past few weeks) before rebounding. The reason? The Securities and Exchange Commission (SEC) decided to pass up on the present versions of the BlackRock and Fidelity bitcoin-based exchange-traded fund (ETF) applications.
The SEC is Again Disapproving a Bitcoin ETF
The news might seem rough at first, though there’s still room to get things moving in the right direction. The SEC did not flat out reject the applications like it normally does. Rather, it described them as “inadequate,” and said that if the issuing companies were willing to make necessary changes, the applications would be reconsidered.
This opens a door of hope not just for both firms, but for the crypto industry. For too long, people have been waiting for a day in which a crypto-based ETF comes to market, and for the past several years, many companies have tried to make that dream come alive.
However, the SEC has been rather stringent when it comes to crypto applications like these. It often says “no” straight away, and when it doesn’t, the delays set in… So much so, that many companies have simply withdrawn their applications before the financial agency even has a chance to look at them.
The SEC claims that both BlackRock and Fidelity have very strong histories to them, which is why it’s allegedly willing to reconsider new applications. However, you can’t help but wonder – given the agency’s background and track record – if this is just a method of buying time or drawing things out to the extent that it usually does.
The SEC has shown repeatedly it’s at war with the crypto industry. Gary Gensler and the lackies he surrounds himself with have gone after crypto companies both large and small. They don’t care about their reputations or how long they’ve been in business. Companies like Binance and Coinbase – two of the largest digital currency firms around today – are feeling the wrath of the agency, and it’s become something of a joke in recent days that nobody is safe, regardless of how powerful or experienced they might appear.
One of the most domineering crypto-based lawsuits initiated by the SEC was brought against Kraken. The firm was forced to pay $30 million in penalties. It was also made to cease all its crypto staking services and activities.
Should We Calm Down?
Chris Martin – head of research at Amber Data – believes that the present reaction to the SEC’s ruling is “overblown.” He commented that bullish signs still exist for many digital assets and said:
These tokens each have their own nuance and different reasons, but it’s reasonable to expect that market confusion is leading some to move into higher risk appetites.
