In what could trigger a bearish decline for the cryptocurrency market, the United States Securities and Exchange Commission [SEC] has yet again stalled a publicly traded Bitcoin [BTC] product. The top regulator released a public notice to the effect on March 29.
An application for a Bitcoin Exchange Traded Fund [ETF] was tabled before the SEC by Bitwise Asset Management with NYSE Arca in February. The initial period for the decision to be made was 45 days from the date of filing the application.
The notice from the SEC stated that a “longer period” was necessary to take a decision on the ETF. Given this extension, the regulatory body will confirm their stance on the Bitcoin ETF on May 16, 2019, according to the notice. The statement read,
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change.”
Bitwise and NYSE Arca filed the application for the Bitcoin ETF back in January. A year prior, when Bitcoin was trading upwards of $20,000, the NYSE filed several applications for permission to list a Bitcoin ETFs.
The SEC has not spared the other top contenders for the ETF, VanEck and the CBOE. Coincidently, the decision regarding the VanEck/CBOE ETF will be taken days after the Bitwise ETF decision, on May 21, 2019. VanEck and the CBOE reapplied for their Bitcoin ETF in late-January, 2019, following the US government shutdown.
It should be noted that the final deadline for the respective ETF proposals would be October 13 and October 18, 2019 for the Bitwise and VanECK/CBOE applications. Given this information, the SEC will merely hear the proposal in May, with two more certain delays in the pipeline, confirmed Jake Chervinkly, a member of the securities litigation team at Kobre & Kim.
His tweet read:
“The SEC has extended its deadlines to approve or deny the Bitwise and VanEck bitcoin ETF proposals to May 16 and May 21, 2019. The SEC can, and almost certainly will, delay both ETF proposals two more times.
The SEC’s *final* deadlines will be October 13 and October 18, 2019.”
Regulatory authorities are still on the fence regarding a publicly traded Bitcoin product as the SEC Chairman confirmed a few weeks ago. Chairman Jay Clayton cited the ease of the cryptocurrency market to be manipulated and the excessive price volatility as the main reasons for the lack of approvals of the ETF.
On one hand, SEC officials do not place trust in the cryptocurrency markets, on the other, they believe a bull-run is imminent. Valarie Szczepanik, the SEC’s digital asset advisor stated that the “crypto-spring” was imminent, but maintained the need for regulatory oversight.
Recently, Bitwise submitted a report to the SEC covering various aspects of the Bitcoin market in support of its application. The report stated that 95 percent of volume touted by exchanges was fake, the BTC futures market was significant compared to its spot equivalent and that under the hood, the Bitcoin market was less prone to manipulation than one might think.
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Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more
Crypto News – 25 May – Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more
— AMBCrypto (@CryptoAmb) 25 May 2019
Daily Crypto News – May 25
1) Bitcoin Wallet receives part of 5,000 BTC: A recent Whale Alert highlighted a transaction on May 24, where a large sum of Bitcoin [BTC] exchanged hands between two anonymous wallets. According to the alert the transaction took place at 22:13:23 + 1 minutes and 5,000.00001092 BTC was transferred from an unknown wallet, with address 19SiCYaYKZh9A8HUjuh14eg5wtYzKxiFbB, to another unknown wallet with address 14GcjGjxwadzcpmq9EG3KUgTKATjurbnWt.
Read more at https://bit.ly/2VRQwb0
2) Bitwise Report 2.0: Bitcoin [BTC] futures continues growth: On a month-on-month basis, Bitcoin Futures saw a massive bump in April trading at an average of 10,000 contracts daily, peaking on April 4, with over 22,000 contracts traded. To put that number in perspective, in March 2019, the average contracts traded was less than 4,000. Despite the high standards set in April, the average daily contracts traded in May, with 25 days gone has exceeded 14,000 and still looks to grow, given the price performance of Bitcoin.
Read more at https://bit.ly/2W40sTR
3) Craig Wright on private keys: Craig S Wright has, for years, claimed he is the true creator of Bitcoin [BTC] without providing a shred of evidence to support the same. With the crypto-community levelling, Wright could prove his worth by sending BTC from Satoshi Nakamoto’s touted wallet containing around 980,000 BTCs, the BSV man in a twisted cause and effect situation, stated he will “sign” into his wallet only when he proves he is the creator.
Read more at https://bit.ly/2X6fdlw
4) Tether’s [USDT] market cap hits ATH: Tether and Bitfinex are being closely scrutinized now more than ever due to the NYAG’s lawsuit; however, the scrutiny doesn’t seem to have affected Tether as the market cap of USDT has increased by over $100 million in approximately 70 days.
Read more at https://bit.ly/2McaTjE
5) Tether volume shift: Another controversial topic in the cryptocurrency industry was the issue of fake transaction volumes on many of the popular cryptocurrency exchanges. The magnitude of the topic was so large that even Changpeng Zhao, the Chief Executive Officer [CEO] of Binance had raised red flags. This topic and Tether as a whole received another twist when Larry Cermack, the Director of Research at The Block, pointed out a few parameters when it came to the said volume.
Read more at https://bit.ly/2wmk4mJ
6) Bitfinex’s LEO tokens listed on Delta Exchange: Bitfinex’s Leo tokens faced quite a lot of criticism when they were announced, due to the missing $850 million funds from Bitfinex. The private investment round by Bitfinex also faced a lot of heat from the media. However, in a recent development, Leo tokens are being listed on various exchanges for trading.
Read more at https://bit.ly/2HUEnNB
7) Robinhood en-route a projected valuation of $7 billion: Robinhood, the California-based cryptocurrency exchange made headlines recently when a source close to the organization revealed that it was on the verge of closing their latest round of funding at a valuation of a whopping $7 billion – $8 billion. Sources even claimed that the current round of funding could act as a precursor to an even bigger round of funding, which would pit Robinhood with the bigwigs like Coinbase and Binance.
Read more at https://bit.ly/2W64KKj
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