Bitcoin price gains could be hit by ETF ruling
Bitcoin’s (BTC) jump to a fortnight high may be encouraging for investors but the imminent US Securities Exchange Commission’s (SEC’s) decision on bitcoin exchange-traded funds (ETFs) could well dampen any further gains.
Bitcoin rose to $6,899 on Bitfinex earlier today – the highest level since Aug. 7 – and was accompanied by a 10% drop in the BTC/USD shorts.
As reported in Coindesk, BTC’s move above $6,600 marks an upside break of the narrowing price range and signals continuation of the rally from the August 14 low of $5,859.
In theory the opportunity is there for BTC to go past the $7,000 barrier. But it may prove a stiff challenge for bitcoin as investors may adopt a more cautious stance ahead of the SEC’s ruling on the ETF due in the next 36 hours.
The SEC was due to make a decision on whether to approve bitcoin-related exchange-traded funds earlier this summer but decided it needed longer to weigh up the evidence.
The crypto community is in the main excited at the prospect of a bitcoin ETF, however within the financial services sector in general there are concerns about “rubber stamping” bitcoin as an asset and whether governments should take this step.