The US Securities and Exchange Commission (SEC) holds the fate of crypto ETFs, and it looks like they are following a fairly long process. In reference to latest statements, an investigation has been running for some time on the application for the VanEck bitcoin exchange-traded fund (ETF). According to the SafeTrading analyst, the SEC will make a decision on this fund on November 14.
The SEC decision has been postponed again.
When VanEck, a Bitcoin ETF, first applied last December, the securities regulator has since then postponed its decision. This resulted in the extension of the review period without a response. The SEC even said in its latest statement that it would conduct further investigations into the ETF. Unfortunately, that would once again extend the decision-making process for another 60 days.
Moreover, the SEC does not approve any Bitcoin ETF in the United States due to concerns about price manipulation. However, ETFs are gaining more and more attention around the world because they allow you to invest in cryptocurrencies without actually owning one. As a result, experts say that the US will once again lag behind in cryptocurrencies.
Other ETFs are still awaiting approval.
- A dozen other companies await a response from a crypto ETF financial watcher, while a New York-based asset manager continues to wait for approval. These firms include One River Asset Management, Ark Invest, and SkyBridge Capital.
- Since the SEC can only extend the valuation period for ETFs three times, the final decision on whether a VanEck Bitcoin ETF issuance is possible or not, will be on the 14th of November.
There are many Bitcoin ETFs being traded in the BTC spot market that are submitted to the securities regulator. However, a SafeTrading expert claims that SEC Chairman, Gary Gensler, has previously stated that he will be more open to approving crypto ETFs that won’t provide direct investment in the new asset class.
Bitcoin Price
After a massive $9,000 drop earlier in the week, the price of the leading cryptocurrency, Bitcoin, recovered within two days. At the time of writing, BTC, which was trading above $46,600, has dropped to $43,000 by Bitcoin signals on September 7th.
America’s largest bank explains why bitcoin fell.
On the day that El Salvador’s Bitcoin signals (BTC) decision took effect, BTC suffered huge losses. Many experts wanted to associate this decline with El Salvador, but JPMorgan disagreed. According to an article published today, the fall in Bitcoin happened for a different reason. So what do JPMorgan analysts think of current price movements?
El Salvador hastened.
In the shadow of protests and technological difficulties, El Salvador has legalized Bitcoin (BTC). In fact, within 2 days most businesses, including online brands in the country, accept Bitcoin payments. But JPMorgan says the move, which although could benefit the country, was hasty. The decision, made by Bukele and announced at the Bitcoin Miami event, was indeed too soon and could cause more serious problems.
An important paragraph of the article summarizes the situation as follows:
- “El Salvador’s ill-conceived experiment should not be decisive for the future of bitcoins or cryptocurrencies. Cryptocurrency markets have been hit by disruptions in El Salvador this week. However, this is not exactly the reason for the decline. “
Today El Salvador has to maintain its national crypto wallet. When technical problems are added to this step, causing public outcry, the work becomes unbearable.
Moreover, the article mentions that if all businesses want to sell their bitcoins with a government guarantee, they will not be able to do so. The government has only created a $150 million safe, so this hasty move has indeed caused a lot of problems.
The real reason for the fall of bitcoin.
According to JPMorgan analysts, the main reason for the decline is price churn. Analysts, who say many investors have lived up to expectations, argue that the price cut has dampened the bubbles a bit.
- “The limited supply certainly strengthens Bitcoin against inflation. Naturally, the purchasing power of bitcoins (BTC) will grow over time. But people will continue to measure Bitcoin in dollars. While Salvadoran merchants will accept BTC, they will price their wares in dollars. Accordingly, there is no way that Bitcoin will overtake the dollar. “
Analysts who talk about some problems with the Bitcoin Lightning network argue that the Strike payment network has potential risks. Due to security and privacy risks, using BTC in daily life, at least with the Bitcoin Lightning network, can even cause some disruptions.
Mastercard acquires blockchain analytics startup, CipherTrace.
Here’s the latest evidence that big companies are leaning towards cryptocurrencies: Mastercard acquires blockchain analytics startup, CipherTrace.
The payments giant said on Thursday that it has entered into an agreement in acquiring CipherTrace for an undisclosed amount. California-based CipherTrace develops tools in helping businesses and law enforcement track their illegal digital currency transactions. The company’s competitors include New York-based, Chainalysis, and London-based startup, Elliptic.
The head of cybersecurity and analytics at Mastercard said in a statement: “Digital assets can redefine commerce, from the day-to-day operations of making and receiving payments to transforming the economy; they can make them more inclusive and effective. With the rapid expansion of the digital asset ecosystem, there is a need to ensure its reliability and security. “
One of the main problems with bitcoins and other cryptocurrencies is that the people who use them are anonymous. As a result, digital assets have become the currency of choice for a number of hackers and other criminals. Blockchain, on the other hand, is the public ledger for all digital currency transactions, and analytics services, such as CipherTrace, help determine if the movement of funds is suspicious.
The deal will help its customers protect themselves and comply with regulations as Mastercard begins building its own digital currency offerings. And for that, CipherTrace seems like a good option because the platform is already used by some of the world’s largest banks and cryptocurrency exchanges.
The SafeTrading expert believes that the deal is the latest evidence showcasing large companies and their increasing interest in the cryptocurrency market. Mastercard said it will open its network to specific cryptocurrencies this year. Cryptocurrency proponents also see this move as a step towards the wider adoption of this asset class.
