Crypto enthusiasts are worrying that the Bitcoin ETFs are not coming anytime soon, but the U.S. Securities and Exchange Commission (SEC) has promised to make final decisions on nine proposed bitcoin exchange-traded funds (ETFs) in the next two months. Optimists are counting on the wider adoption of cryptocurrencies to support prices, but regulators and many institutional investors have remained wary amid concerns over security and market manipulation. "The SEC is likely to delay until February of 2019 and the chances of a Bitcoin ETF approval in 2018 have always been low".
Bitcoin retreated as much as 7% to $6,393.70 at noon in London, extending its 2018 drop to about 55%, according to Bloomberg composite pricing. Ripple slumped as much as 12 percent, while Ether and Litecoin sank at least 5 percent. All but one of the 100 biggest virtual currencies tracked by Coinmarketcap.com slumped over the past 24 hours. With a total of ten bitcoin-related funds weighed by the SEC officials, the VanEck-SolidX bitcoin ETF is the sole "physical" ETF among all other proposals.
While investors are busy wallowing about the SEC's reluctance to approve a bitcoin ETF, a move that many believe would help concretize cryptocurrency as a mainstream asset class, Morehead said that they are ignoring an announcement that could prove to be just as important: the world's largest stock exchange operator is launching a crypto-focused subsidiary. More specifically this involves the CBOE as the decision involves a proposed rule change to allow for said listing.
Still, the skepticism among regulators was apparent in comments this morning from Federal Reserve Bank of Richmond President Thomas Barkin, who said that digital money doesn't yet have "the level of protection that you would hope for in a currency".