Investors need to learn patience.
The US Security and Exchange Commission (SEC) has decided to postpone a decision regarding a bitcoin-backed exchange traded fund (ETF), according to an August 7 press release[1].
The proposal, this time filed by Cboe BZX Exchange, Inc[2], is one of several filed by the traditional stock exchange, investment firm VanEck and blockchain company SolidX[3], and/or the Winklevoss twins[4]. So far, no attempts have been approved by the SEC.
The postponement of the ruling received a lot of attention from news outlets – not only because of the actual decision, but because the price drop of many cryptocurrencies seemed to coincide with the SEC's announcement.
While it is true that after the decision was announced the price of bitcoin[5] has dropped more than $700 in the last two days and that the price of [6]Ether[7] has followed a similar trajectory, according to CoinMarketCap, it may have little to do with the SEC's decision to postpone this ruling, and it's far from certain that the market will see long-term losses.
After the Winklevoss brothers were denied on July 26, 2018, the price of bitcoin did fall precipitously, but by the start of business the very next day, it was back up to near where it was before the ETF announcement.
Traders and journalists alike were quick to blame[8] a research paper[9] released on June 13 of this year for another drop in the price of bitcoin. The paper had posited that actors associated with Bitfinex had been using Tether to manipulate the price of bitcoin on the exchange. What
