Bitcoin traded lower in New York early Friday night after the Securities and Exchange Commission voted 3 to 1 against the proposal for a Bitcoin Exchange-Traded Fund.
The news came when investors met with optimism on a wave of optimism Bitcoin is rising by nearly 40% this month alone. However, the decision provided a glimmer of hope with Commissioner Hester M. Peirce's dissenting viewpoint, arguing that the decision was a signal that "innovation in our markets is undesirable".
Read: Winklevoss bitcoin ETF rejected by SEC
after trading at an intraday low of $ 7,798.70, Bitcoin
BTCUSD, + 0.16%
has regained $ 8,000, most recently at $ 8,105.23, 0.4% since Thursday, 5pm. Eastern Time at the Octopus Exchange
Reaction to the SEC Decision
Based on the SEC's decision, the president of Cboe Global Markets, who would note the ETF should have insisted, said the company continues to work with regulators, however, believe that US investors can be better served by registered products. "We are looking with interest at both the Commission's communication and Commissioner Peirce's opposition," wrote Chris Concannon, Cboe's President and COO.
"We take the security and stability of markets and products very seriously and are fully in agreement Investor protection should be at the heart of any approval process, given that US investors are clearly focused on this accessing unregistered financial products, we also believe that investors can be better served by products traded on a regulated securities market and protected by robust securities laws. "
The rejection of the youngest Winklevoss Bitcoin SEC's SECP proposal offers a major advantage
Another false breakout
With Bitcoin failing to break its 200-day moving average, a closely watched momentum indicator, an analyst who correctly predicted the decline in Bitcoin of $ 10,000 in May is cautious, the recent move was yet another false breakout.
"Any significant sell-off is littered with heavy rebounds, the problem being that each of these bounces is less high than the previous one," wrote Jani Ziedins of Cracked Markets in a blog post. "This year we experienced strong bounces at $ 17,000, $ 13,000, $ 12,000, $ 10,000 and now $ 8,000. Will this one end differently than this? I'm skeptical."
Futures and Altcoins fight
It's not surprising that futures and old coins, coins that are an alternative to Bitcoin, started on the back foot on Friday.
The Cboe contract for August
has dropped 3.6% to $ 7960 and CME Group Inc
CME, + 0.13%
which expires later on Friday, has lost 5.2% at $ 7,845, while the most active August contract
was 1.6% at $ 8,120
In altcoins, ethers
has dropped 1.9% to $ 463.47, Bitcoin Cash
lost 2.3%, traded at $ 803.80, Litecoin
has lost 3% to 83.30 USD and Ripple's XRP coin
fell 0.9% at 45 cents.
Read: Bitcoin's Rise Can Bring Bubble Calls Back – But This Artwork Places Everything in a Perspective