The SEC rejected the Winklevoss ETF, but that wasn't the one that was expected to pass anyways.
On Thursday the SEC announced that they had rejected the Winklevoss bitcoin ETF application.
More about that can be found here:
https://www.cnbc.com/2018/07/26/winklevoss-twins-bitcoin-etf-rejected-by-sec.html
This marked the second time the SEC had rejected a bitcoin ETF from the Winklevoss twins.
The cryptocurrency markets reacted rather harshly.
After rallying significantly off the lows over the past two weeks, mostly related to rumors that an ETF may actually get approved by the SEC, bitcoin sold off about 6% from about $8,300 down to about $7,800.
Threatening to derail the entire newfound bullish trend.
However, the very next day, surprisingly, bitcoin rebounded rather significantly, all the way back over $8,200.
Why the recovery?
Mostly it was due to the fact that the ETF that has the best chance of being approved wasn't the Winklevoss ETF anyways.
It is the application from VanEck and the CBOE, companies that have vast experience in running successful ETFs.
Not only that, but they structured their proposed ETF in a way that alleviates most of the SEC's prior concerns.
In that regard, it almost looked like the selloff due to the Winklevoss ETF was mostly an emotional over-reaction.
Though, it does serve as a reminder that the VanEck ETF is also likely to be a long shot to gain approval as well.
(Source: https://medium.com/@WilliamClayton/these-arent-the-droids-you-re-looking-for-3b0f725f93c8)
My thoughts:
These aren't the droids (etfs) you're looking for...
Overall, I think the main reason prices are holding up is because whether the VanEck ETF gets approved or not, investors are starting to realize that it is only a matter of time before one does get approved.
The price appreciation that such an approval would likely bring is already starting to be priced in.
And they say that the cryptocurrency markets aren't efficient... That is precisely how efficient markets work.
Stay informed my friends.
Image Source:
https://www.bitstarz.com/blog/winklevoss-twins-bitcoin-etf-declined-by-sec-again
