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New Bitcoin [BTC] ETF on the horizon? SEC reconsiders after ease of approval rules

Anirudh VK

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New Bitcoin [BTC] ETF on the horizon? SEC reconsiders after ease of approval rules
Source: Unsplash

Earlier this month, the SEC started seeking comments from “interested persons” on a Bitcoin [BTC]-based exchange-traded fund. This comes after the news of a new proposal to ease ETF approvals.

The proposal is for the VanEck SolidX Bitcoin Trust, which is a Bitcoin-only fund. The partnership between VanEck, a New York-based money manager, and SolidX, a financial services company, occurred earlier this year in June.

While they have not been able to secure a license for ETFs while individually filing, the partnership aims to change this. VanEck is said to market the ETF, while SolidX acts as a sponsor for a Bitcoin ETF that will be “insured against loss or theft of bitcoin.”

Jan Van Eck, President of VanEck stated:

“We believe that collectively, we will build something that may be better than other constructs currently making their way through the regulatory process. A properly constructed, physically-backed bitcoin ETF will be designed to provide exposure to the price of bitcoin, and an insurance component will help protect shareholders against the operational risks of sourcing and holding bitcoin.”

This news comes hot on the heels of the SEC asking for comments on the new ETF. Older applications have been turned down, with the authority quoting concerns regarding Bitcoin’s liquidity and volatility.

The SEC, however, recently announced that they propose to ease ETF approval rules, especially for low-risk ones. This would allow companies to issue “plain vanilla versions” of the ETF without seeking approval.



SEC Commissioner Kara Stein said:

“The rule would include many of the website disclosure requirements that are in existing orders such as disclosing the ETFs current net asset value per share, market price, and premium or discount – each as of the prior business day.”

The regulatory air around cryptocurrencies seems to be clearing, as institutional money seems more eager to move into the market. However, there is no doubt that the state of affairs will be determined by the SEC’s approach to it.





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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.

Bitcoin

Bitcoin price prediction: BTC prices primed for small correction that could evolve into a major correction

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Bitcoin prices primed for a small correction which could evolve into a major correction
Source: Unsplash

Bitcoin has been on a parabolic bullish rally for quite a while, which was followed by sideways movement of the price. However, at press time, the pattern formed indicated an imminent correction.

At press time, Bitcoin was priced just below $8,000, i.e., $7,979 and had a market cap of $141 billion. The dominance of Bitcoin had reduced as the rally ceased and stood at 57%.

Descending Triangle Pattern

Source: TradingView

As seen in the chart above, Bitcoin’s prices are enclosed in a continuation pattern, i.e., a descending triangle, which is a bearish pattern for Bitcoin. The volume for the same can also be seen decreasing over the course of the pattern, which affirms the above pattern.

When the pattern unfolds, the price will break out of the pattern and head downward; the only thing stopping the price from dipping is important resistance points. The price is likely to hit $7,820 level after the breakout, however, if the former level fails there are subsequent resistance points at $7,674, $7,529, and $7,256, which will be tested in that particular order.

A possible Double Top in the formation?

The above breakout is a short-term movement of price, however, on a longer time frame, the price is stuck in limbo, which explains the sideways movement. The parabolic rally was quick which is why most prominent traders, including Peter Brandt, Tone Vays, and others, are expecting a correction, that is overdue.

Source: TradingView

In the above chart, the way the price of BTC is moving suggests the possibility of the formation of a double top. However, the pattern is only confirmed after the price breaks the lowest resistance, i.e., $7,529. After which, the price will decline quickly into a correction that is being expected by most of the traders in the crypto space.



There is however a scenario where the price might just take off from here since it’s is undergoing a sideways movement, which can also be treated as an accumulation phase.

Conclusion

Crypto Twitter is quite bullish on Bitcoin and expects it to continue the rally, however, technical analysts and traders are awaiting a correction. According to Tone Vays, the price of Bitcoin will reach $4,500 before proceeding to a bull rally; Peter Brandt is also awaiting a pullback. No matter the outcome, it is better to tread carefully or stick to stacking sats.





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