Crypto Market Bleeds as SEC Delays VanEck Bitcoin ETF Decision

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Second, it could be that bitcoin was also reacting to the OTC market, which exhibited unusual behavior that may have caused large sell orders to be liquidated.

The 2018 selloff in cryptocurrencies plumbed new depths on Wednesday after the U.S. Securities and Exchange Commission dented enthusiasts' hopes for a VanEck exchange-traded fund backed by Bitcoin. They often provide access to every major asset class and are seen as great investment options since they are easy to use, transparent, flexible, and reasonably low cost. Last month, the SEC denied the Winklevoss twins' latest bid to create such a financial instrument, and the agency has delayed ruling on almost a dozen other bitcoin funds. However, there are also other Bitcoin ETF applications submitted to the agency. Meanwhile, the ETF team has submitted to the SEC key changes addressing all concerns cited as reasons for rejecting Solidx Bitcoin Trust ETF previous year.

An SEC decision on VanEck/SolidX is due out September 30. A physical ETF is one where the underlying asset - in this case, BTC - is physically held by the issuing company.

As it stands, Bitcoin dominance is high, as is the hashrate of Bitcoin, therefore a surge in Bitcoin's price soon could have a huge impact on the rest of the markets.

The investment world is focused on what experts consider the best chance of an SEC-approved cryptocurrency ETF which he said was the SolidX bitcoin Shares ETF. Canaccord predicts that the SEC will not decide on current ETF applications this year, and will exercise its right to postpone the decision to 2019 next year.

The market has been waiting for a long time for a regulated ETF product to hit the market as traders believe it will bring new money into the market. The rule change for these products was submitted by the New York Stock Exchange Arca on December 4, 2017.

The latest slump appears to have been triggered by a US Securities and Exchange Commission's (SEC) announcement late on Tuesday, analysts at the London Block Exchange said overnight. This proposed rule change was published for comment in the Federal Register on July 2.

10 Bitcoin ETFs are either to be accepted or rejected. The CBOE, VanEck, and SolidX have all put in a request to offer Bitcoin ETFs and the SEC isn't ready to make a decision on this just yet.

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