In the last day or so the U.S SEC has delayed yet another Bitcoin ETF decision. The agency has added a 35 day period to the original 90 days, in which it says it will gather more information and opinions. In its response, the SEC has asked 14 questions in which the public is to answer and help the SEC make their decision.
Predictably, the questions surround the issue of protecting investors from fraudulence and exploitation from bad actors in the industry.
The agency stated in its report:
““The Commission is instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with Section 6(b)(5) of the Act, which requires, among other things, that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade,’ and ‘to protect investors and the public interest.’”
Bitcoin (BTC) Reaction To The Delay
Despite the delay by the SEC Bitcoin is having a positive day. The SEC decision was bound to have some effect on prices with a rejection most probably seeing a short dip as speculators cash out. On the other hand, if the SEC was to approve the proposal, prices would skyrocket. But as some analysts have stated, a Bitcoin ETF approval looking unlikely soon.
While it was hard to predict what would be the reaction from Bitcoin in the event of a decision delay, the asset seems to be ignoring this news and forging on. At the time of press, Bitcoin has soared by around 2% seeing prices climb to around $7,950.
In the last couple of days, Bitcoin has been flirting with the $8,000 position. In the several attempts where it has climbed above it, it has lacked enough support to stay above and slipped right back below.
With this recent moderate rally, we could see it again climb above this but the bulls will need to push further up to find support above it. Last week Bitcoin hit a high of $8,300 which is the bulls current resistance position, a retest of this could see Bitcoin return to its bullish pattern from the last couple of weeks and find support above $8,000.