Bitcoin (BTC-USD) risks giving up its recent gains. The Securities and Exchange Commission told Nasdaq and CBOE that Blackrock and Fidelity filings for a Bitcoin ETF are inadequate.
WSJ’s report would deny the firms an ETF listing. This hurts the liquidity of BTC and related cryptocurrencies. Had the SEC accepted the filing, it would have widened access to Bitcoin. The Bitcoin market needs the SEC’s approval to give investors more choices. Fiat currency, gold, and gold miners are the mainstream options.
Even though Blackrock would address SEC transaction transparency concerns, the setback delays Bitcoin’s rise. Blackrock would need to identify the spot bitcoin exchange that offers the surveillance-sharing agreement.
Bitcoin did not fall by much after the report. Crypto markets expect the firms to refile for listing the ETF. Crypto platform Coinbase (COIN) also held onto its June rally. COIN stock bottomed at below $50 to close at around $72. However, bears remain highly bearish on COIN stock. The short float is 21.79%.
Coinbase’s platform is under scrutiny by the SEC. Conversely, a Bitcoin ETF has fewer hurdles.
Your Takeaway
BTC prospects remain strong. The chances of another downturn are very low. The equity market is pushing forward to have an ETF for the cryptocurrency. This strengthens BTC as an alternative to fiat currency.
