Bitcoin rallies to $8241 after SEC chief Hester Peirce supports cryptocurrency ETF
The first generation cryptocurrency, Bitcoin‘s price dropped after the news broke, U.S. Securities and Exchange Commission rejected a request to list an exchange-traded fund managed by Tyler and Cameron Winklevoss for the second time.
On Thursday SEC revealed that it is not completely convinced that bitcoin [BTC] has sufficient surveillance. Also, it added that Cboe Global Markets Inc., which would have listed the Bitcoin ETF, failed to show that the underlying market was “resistant to manipulation.”
Considering the last 24 hours, BTC has experienced a roller coaster in the price. During the initial phase of the last 24 hours, BTC was trading at $8221. Later it dropped to $7839- marking the lowest in the last 3 days.
Bitcoin is heading north again after Commissioner Hester Peirce revealed that she is backing the cryptocurrency ETFs in an interview with Bloomberg Radio. Now the coin is trading at $8241. Also, cryptoanalysts predict that the price will spike at a steady pace.
Barry Pershkow, a partner at Chapman & Cutler LLP and former SEC employee stated,
“This is a big shot across the bow for those seeking to launch digital currency exchange-traded products, You don’t write 92 pages and undertake serious economic analysis unless you’re trying to make a really important statement.”
Bitcoin has witnessed a spike in the price recently after the speculation that the SEC would sign off on an Exchange Traded Fund. After struggling for two months the Bitcoin’s [BTC] price hiked to $7,820 on 24 June and rallied even higher to touch $8500 on 25 June. After the SEC announcement, BTC fell by 3.6 percent to $7,848.46 which is almost 60 percent below the high of $19,511 reached in December.
The SEC said in its filing, “The record before the commission indicates that a substantial majority of Bitcoin trading occurs on unregulated venues overseas that are relatively new and that, generally, appear to trade only digital assets, Regulated Bitcoin-related markets are in the early stages of their development.”
BTC spiked back again to $8,000 after falling to a three day low of $7,793.02 on Friday, after Peirce revealed her support for bitcoin ETF. SEC Chairman Jay Clayton and the agency’s two other commissioners voted to block the ETF request. The only commissioner who voted in favor of bitcoin ETF Winklevoss fund was Peirce.
Peirce revealed on the Bloomberg Markets AM show, “As regulators, our rule is not to judge the value of what an investment is, it’s to give people the opportunity to make those judgments themselves.” The fund that is proposed “would allow institutions to play a bigger role in the Bitcoin market, which I think would be good for the market and be good for retail investors as well.”
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