The SEC now has until september 30 to "approve or disapprove, or institute proceedings to determine whether to disapprove" a proposed rule change from Cboe Global Markets Inc. that would allow the listing of an ETF from VanEck Associates Corp. and SolidX Partners Inc., the regulator said in a statement.
The fact that Bitcoin's dominance in the cryptocurrency market is now up to 48.8% also spells bad news for the market as it indicates that investors are pulling out of altcoins and into Bitcoin, after which they could be converting their funds into fiat currencies.
The falling spread or difference between the total market capitalization of all cryptocurrencies except bitcoin and BTC's market capitalization is also signaling reduced demand for high-risk alternative cryptocurrencies.
Bitcoin was down 5.6 per cent to $6,484 as of 8:19am in NY, recovering from a 7 per cent drop earlier while extending its 2018 decline to 55 per cent, according to Bloomberg composite pricing.
VanEck has made headlines as being one of the very few investment companies to compete for the establishment of the first Bitcoin ETFs in the world. For VanEck-SolidX Bitcoin ETF, the SEC said it is extending a 45-day time period.
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And when it comes to discretion, the Securities and Exchange Commission's decision to further explore the creation of Bitcoin-backed exchange traded fund products is good for the market, according to cryptocurrency industry insider and founder of Blackwell Capital Brian Sewell. "As of August 6, 2018, the Commission has received more than 1,300 comments on the proposed rule change", the agency wrote. Around the time the SEC announced on their delayed approval, all seemed well and the market was looking like it was going to hold up and ignore the news.
"I think there's too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores". 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.
"It will take a long time before we see SEC approve ETFs".
The analyst added: "Although the current trajectory for Bitcoin is tilted to the downside, the outlook could change if a Bitcoin ETF becomes reality".
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