Last week bitcoin hit record highs of over $1,300, beating the price pf gold for the first time.
Bitcoin prices rose as analysts predicted that the the bitcoin ETF had a 50/50 chance of approval from the SEC…
Everything came crashing down when the SEC rejected the ETF.
The price of bitcoin dropped sharply, falling more than 15% to under $1,060.
The SEC turned down the ETF because of the possibility of bitcoin fraud. The New York Times wrote, “The commission said it was rejecting the Winklevoss Bitcoin Trust because the markets where Bitcoin are currently traded are largely unregulated. The lack of such regulation, the commission said, raised ‘concerns about the potential for fraudulent or manipulative acts and practices in this market.’”
The news was a blow for bitcoin investors, but bitcoin did what it always does… it surprised everyone by jumping over the weekend, and is now sitting at $1,241.58.
It doesn’t come as a shock that the SEC rejected the ETF, because it is easier to commit fraud with bitcoin. However, the whole point of the electronic currency is that it’s unregulated, and uncontrolled by any one government.
While the bitcoin ETF would have made it easier to invest in the currency, bitcoin has shown that it’s not done in the spotlight, thumbing its nose at the SEC and rising once more.
There are currently two other bitcoin ETF’s in the works, so hope is not lost when it comes to a bitcoin ETF. At this point, we’re waiting for a “when” rather than an “if”.