A key ruling from the SEC in America is set to have short term ramifications at least for cryptocurrency prices…
The last time the American Securities and Exchange Commission (SEC) was faced with a ruling on proposed cryptocurrency exchange traded funds (ETFs), it delayed the decision for a final time until the end of next month. The impact of this was notable, with a cryptocurrency price recovery being pretty much derailed in the aftermath of that decision.
Since then, the likes of Bitcoin has stayed primarily in the $6000s (ducking briefly under that level), but it looks as though this coming Thursday is set to bring with it another crucial decision, and another with price ramifications.
The SEC has before it another pair of cryptocurrency ETFs to rule on, and this time, it’s not allowed to delay its decision anymore. It’ll decide whether to grant approval for the ProShares Bitcoin ETF and ProShares Short Bitcoin ETF, with its final deadline being August 23rd.
This pair of ETFs don’t require anyone to actually hold physical Bitcoin, rather the value of them rests with Bitcoin futures contracts.
The proposals have been around for 11 months, and there are more ETF rulings around the corner too. Several more Bitcoin-linked ETFs are awaiting a decision from the SEC, and should it rule in favour of at least some of them, it’s been seen as a sign of bringing cryptocurrency a step closer to the everyday consumer. Should they be rejected, then the US legislature and the crypto industry will remain a distance apart, and the impact – in the short term – on crypto prices isn’t likely to be pretty.
Not for nothing, this week’s rulings from the SEC are being watched with plenty of interest – and a volatile price week is very much expected…