The US Security Exchange Commission has shocked the crypto market by giving them a pleasant surprise. The US SEC has approved two applications related to the Bitcoin-powered exchange-traded funds (ETFs.). Bitcoin lovers in the US must be very happy over the news, and they are reflecting their happiness by boosting the market upward.
Bitwise would be launching Bitcoin exchange-traded funds next month in the beginning along with one investment management firm called VanEck. The decision of this matter was pending with SEC for over six months; Bitcoin lovers were keeping one eye on the decision while making their trading and investment moves. The SEC kept on postponing the date to give the final verdict on the application submitted related to Bitcoin ETF. The delay happened for over three times. Last Friday was the date of the final result, but even that was postponed.
However, now that the news is out and the result has been in favor of the market, the market has also responded to the news in a positive way. Since the announcement by SEC, the total market capitalization has increased by $13.8 billion, and the price of Bitcoin/unit has gone up from around $4080 to more than $6000.
Before making the final announcement on the Midnight of April 1st, the US SEC conducted an emergency meeting in which the members and the participants of the meeting reconsidered the decision on the background of the recent public outrage over a delayed SEC decision.
As per the news report, SEC Chairman Jay Clayton called the members of the Commission and told them to give the final decision once without much delay. However many consider this decision as irrational. One MIT Professor has said,
I believe Clayton was attempting to counteract the narrative that the American government is unable to act without shutdowns and other shades of political chaos.
He also stated,
However, this kind of rash action could send the message that the SEC is perhaps not acting with as much caution as it should be exercising.
VanEck filed its recent application on BTC ETF to the SEC in January. Bitwise, on the other hand, filed its application in February with an assurance from SEC that it would take a mere 45 days to decide on the application.
Whatever has been the process and whatever ups and downs the applications have seen, the cryptocurrency community has responded to this pleasant news of approval positively; though some experts are calling this decision irrational, the present market is not. Some crypto lovers are even saying that this decision could work a catalyst and cure the bear market which has been staining the market for months now.
Disclaimer: April Fools’ Day joke!