Bitcoin price gains could be hit by ETF ruling

August 22, 2018
Chris Wheal

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.

SEC is expected to make its’ decision on bitcoin ETFs in the next couple of days

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.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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