BTC/USD surges above 6.5k mark as US SEC seeks clarification from VanEck on Bitcoin ETFs
Fri, 21 Sep 2018, 07:20 am UTC
This year, bitcoin and other cryptocurrency price trend hasn’t been that desirable so far on the back of the news of US Securities and Exchange Commission’s (SEC) clampdown on ETF product approval decision. But for now, as per the official sources released September 20th, the U.S. Securities and Exchange Commission (SEC) has now demanded further standpoints concerning its decision on the listing and trading of a Bitcoin (BTC) exchange-traded fund (ETF).
The fund is designed to be physically-backed as it will hold actual Bitcoins, and is expected to list on the Chicago Board of Exchange (CBOE) BZX Equities Exchange (BZX). BTC ETF propose plan which was originally applied for approval in June under contemplation is driven by reputed investment firm VanEck and financial services company SolidX.
Today, Bitcoin price has considerably carried further gains to the highs of $6,632.20 levels or about 2.12%, BTCUSD (at BITFINEX exchange), surged from the yesterday’s close of $6,493.90 owing to the constructive news of SEC, while the VanEck seems to be exploring opportunities to legally take part in the cryptocurrency market.
Technically, BTCUSD trend slides through descending triangle, but bulls bounce back above 21DMAs, more rallies seem to be on cards only on break-out above resistance as leading oscillators (both RSI & Stochastic curves) signal bullish momentum (daily chart). While on the major trend, the failure swings were observed at 21EMAs and downward trend-line (refer weekly plotting), the trend on this timeframe is wedged between $5,700 - $11,700 levels.
The US regulatory firm is seeking opinions on some key issues, which include commenters' stances on BZX’s assertions that BTC “is disputably less receptive to manipulation than other commodities that underlie exchange-traded products (ETPs).” The note further reads: “The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,’ and ‘to protect investors and the public interest’.”
Thereby, SEC further clarifies by notifying that “it has not reached any conclusions with respect to any of the issues involved,” and is seeking further comments from interested parties addressing the sufficiency of the BZX’s statement in support of the proposal.
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