• Thu. Apr 18th, 2024

Bitcoin to Take a Hit Following Denial of a Bitcoin ETF

May 28, 2022

Ever since Bitcoin (BTC) came into existence, the ultimate goal for the largest cryptocurrency has been to gain mainstream attention and adoption. Initially, Bitcoin found it really difficult to gain such recognition. However, as some of the mainstream companies adopted Bitcoin, they came up with their own ways of bringing BTC to the mainstream platform.

As more investment and financial companies continued adopting Bitcoin, they aimed at offering BTC to their users in the form of exchange traded funds (ETFs). From the year 2021 until now, dozens of ETFs have been launched throughout the world by many mainstream companies.

As more ETFs continued launching, they continued boosting the trading price of Bitcoin. Even now, whenever an ETF is launched, it tends to help boost the price of Bitcoin.

An ETF is not a direct investment in Bitcoin but is offered in the form of a company’s shares that are valued based on the Bitcoin it holds. This way, the investors use an indirect medium to invest in Bitcoin.

The EFT Sector in the United States

Several investment companies in the United States are also on top of launching the ETFs. Even now, dozens of applications for the approval of the ETFs have been submitted by many mainstream companies at the US SEC.

However, in recent months, the regulatory framework in the United States has grown very aggressive against cryptocurrencies. It is now being expected that the impact of the recent regulatory aggression may ripple into the ETF space as well.

A Bitcoin ETF Rejected by the US SEC

A piece of sad news has just come from the US SEC surrounding the approval of ETFs for Bitcoin. The report shows that the US SEC has recently denied the approval request submitted by the One River Carbon Neutral Bitcoin Trust. It is now one of the most recent ETF requests that have been rejected by the US SEC.

You should be aware that it is not the only Bitcoin ETF that has been denied by the US SEC. This goes to show that the US SEC is now growing more and more aggressive against the adoption of Bitcoin.

The recent denial was made by the US SEC for the One River BTC ETF on May 27. In the request, the One River had revealed that if the approval is given, the ETF would trade through the New York Stock Exchange.

The US SEC has denied the approval request basing it on the lack of regulatory support and backing being provided to the ETF submission.

Just when things were turning green for Bitcoin, the US SEC launched its attack on the largest cryptocurrency. At the time of writing, Bitcoin’s price is worth $30,422.57 and it has experienced a 5.08% surge in the past 24-hours.

However, with the rejection of the ETFs, the situation may become alarming for Bitcoin and its price may again fall below the $30k benchmark.

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