[ccpw id="5"]

HomeCoinsBitcoinBitcoin Price Takes A Hit As SEC Deems Spot ETF Filings ‘Inadequate’

Bitcoin Price Takes A Hit As SEC Deems Spot ETF Filings ‘Inadequate’


The US Securities and Exchange Commission (SEC) has reportedly told exchanges Nasdaq and Cboe that recent filings for spot Bitcoin (BTC) exchange-traded funds (ETFs) from asset managers including BlackRock and Fidelity were not “clear and comprehensive” enough.
Bitcoin ETFs In Jeopardy?
The SEC has rejected several Bitcoin ETF filings in recent years due to concerns over potential fraudulent and manipulative practices associated with the cryptocurrency market. 
The agency has stated that the filings do not meet the standards designed to protect investors and the public interest. In particular, the SEC has expressed concerns about the lack of regulation and oversight in the cryptocurrency market, which could make it easier for bad actors to manipulate the price of Bitcoin and other cryptocurrencies. 

The SEC has also expressed concerns about custody and liquidity issues related to cryptocurrency. While some asset managers have attempted to address these concerns in their filings, the SEC has continued to reject them as inadequate. However, Several proposed solutions have been put forward to address the SEC’s concerns around Bitcoin ETFs. 
One potential solution is the use of regulated custodians to hold the Bitcoin backing the ETF, which would provide greater oversight and security for investors. Some asset managers have also proposed using futures contracts to track the price of Bitcoin, rather than holding the actual cryptocurrency, which could help address liquidity concerns. 
In addition, some have suggested that the SEC could work with industry participants to establish best practices and guidelines for the cryptocurrency market, which could help mitigate risks associated with fraudulent and manipulative practices. 
Despite these proposals, the SEC has continued to scrutinize Bitcoin ETF filings, indicating that more work may need to be done to address the agency’s concerns.
The SEC declined to comment on the Wall Street Journal report, while Nasdaq and Cboe were not available for immediate comment. The decision is a blow to asset managers’ attempts to launch Bitcoin ETFs, which have been repeatedly blocked by regulators in the US.
BTC’s Price Tumbles, Signaling The End Of The Bull Run? 
The latest criticism by the US Securities and Exchange Commission (SEC) on filings for spot Bitcoin exchange-traded funds has caused BTC’s price to drop from over $31,000 to $29,800. 
Although Bitcoin is currently trading above the $30,000 line, there is uncertainty around the ETF filings by BlackRock and other major financial players, which could lead to another downtrend and a test of lower support.
If this were to happen, Bitcoin bulls must hold the $29,500 line, which is the next support below $30,000. Additionally, Bitcoin’s 50-day moving average (MA) on the daily chart could provide strong support for the cryptocurrency, currently placed at $28,100.
Related Reading: Ethereum Classic (ETC) Resumes Uptrend, Notches 13% In The Last Day
Nevertheless, as reported on June 29th by NewsBTC, Bitcoin is likely to enter a 10-day period of downtrend due to the loss of the strength of the current uptrend, as noted by the Average Directional Index (ADX) on the 1-day chart.
The ADX is a technical indicator that measures the strength of a trend and is used by traders to identify potential price movements. Bitcoin’s ADX is already spiking down, which suggests a potential shift in trend. Additionally, the squeeze momentum indicator also reflects the downtrend that Bitcoin could be poised to experience in the coming week and a half.
Overall, the recent criticism by the US SEC of the filings for spot BTC ETFs by BlackRock and Fidelity adds to the uncertainty surrounding the cryptocurrency’s future price movements.
If the asset managers cannot find common ground with the SEC’s expectations, their ETF applications could be in jeopardy.

Featured image from Unsplash, chart from TradingView.com 


How High Can Shiba Inu (SHIB) Rise When Shibarium Restarts?

Shibarium, the much-anticipated layer-2 network of Shiba Inu is back online but remains under the radar, confined to an extensive private test phase. Shytoshi Kusama,...

Binance Coin Slides Under $220 – What Comes Next After Consolidation?

Binance Coin (BNB) faced a weekend of market indecision, leading the altcoin into a range-trading scenario. The coin, which had dropped below the $220 mark...

Litecoin Price Prediction: LTC Faces Uphill Task Near $70

Litecoin price declined heavily below $80 and $70 against the US Dollar. LTC is attempting a recovery wave but upsides might be limited above $70. Litecoin...

Dogecoin Power Play: Robinhood Faces $16 Million Whale Exodus – Details

Despite the fact that the cryptocurrency market is always changing, Dogecoin whales have become a defining force. They are responsible for big moves that send...

Follow us

Most Popular