The SEC rejected the Bitcoin ETF. Prices are falling and volatile, we will be updating this on the fly, please return here as we will be monitoring trade action today as we head into the week end. Photo attribute to Coindesk.
Bitcoin reached an all time high of $1300 and fell nearly $300 with this news, again we will be updating this as news comes out and prices stabilize. Bitcoin prices were trading $1052 down $139 or 14% at 4:24ET after the news. Traders we spoke to said the $1000 level was a critical level of support, which held the first time down. Watching the action we note an incredible amount of volume and activity in trading as many seem caught off guard expecting the SEC to pass this.
Bitcoin prices have a long history of volatility trading as high as $1200 and then falling back to $150. The rally for the recent move started in January 2015 at $170 per coin, and marched higher over the next few years with few significant pullbacks running straight to $1300 until this hiccup. Today’s range with the SEC news was $1325 to $1022, which is unusually high even for Bitcoin traders.
The US Securities and Exchange Commission has rejected a bid to launch the first-ever bitcoin ETF, according to multiple news sources. The decision by the SEC effected bitcoin investors Cameron and Tyler Winklevoss, who submitted to list the bitcoin-tied product in mid-2013. The SEC has been weighing a proposed rule change that would pave the way for the ETF to be listed on the Bats BZX Exchange.
The SEC has solicited numerous public comments and delayed its decision forward several times. As well, the ETF’s backers have expanded the scope of the offering from an initial $20m to $100m. According to a publicly distributed notice detailing the decision, the SEC said:
“As discussed further below, the Commission is disapproving this proposed rule change because it does not find the proposal to be consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest.”
Photo attribute from Coindesk..
