Past Wednesday almost every major cryptocurrency had a really tough day. They were all trading in the red zone and Bitcoin and Etherem were even down by more than 7% in only 24 hours. Ripple lost more than 13% of its market value and Ethereum Classic lost almost all of its big gains. Tether, however, had the strongest performance since it is following the US dollar.
The entire crypto market is now worth $219.3 billion which means that it dropped by 13% since last Tuesday.
The Exchange Commission is looking into launching the first exchange-traded fund and it is also focusing on holding cryptocurrency tokens. The proposed ETF, better known as SolidX Bitcoin Shares requires a change to the SEC’s market listing rules. The recent crypto plunge was triggered because of extending the rule that applies to the deadline which is now continued from 45 days to three months. The SEC is expected to deliver a decision soon.
This is of course, not the first time to attempt to get a cryptocurrency ETF on the regular stock market and the longer we wait for a decision, the bigger the chances are for a one step closer to rejection. Just two weeks ago, the Winklevoss twins hurried to send an application for a bitcoin-specific ETF but it was rejected by the same commission. The SEC isn’t really in a hurry to open a position for cryptocurrencies to trade on the true stock and ETF exchanges.
Regulatory bodies are worried for a reason. They worry about the market being manipulated and that there will be poor investor protections. One member of the commission argued that the necessary rule change would only work under legal laws and guidelines. The commissioner is concerned about how the commission will approach the crypto market and will this only lead to a greater institutionalization of the bitcoin market.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]