The cryptocurrency market seems to be overreacting to the decision taken by the U.S. Securities and Exchange Commission to delay the VanEck SolidX Bitcoin Trust ETF. On August the 7th, the regulatory agency decided to take more time to evaluate the bitcoin exchange traded fund that the crypto community was following very closely.
As soon as the headlines about the decision taken by the SEC spread, the cryptocurrency market experienced a very strong fall. Indeed, Bitcoin price fell from $7,300 to $6,200 dollars in just a matter of hours. The same happened with other virtual currencies, and the market lost more than 13% of its value in a the span of hours.
Dan Morehead, the famous cryptocurrency hedge fund manager, said that investors are overreacting to the news of the delay.
Pantera Capital’s CEO explained on CNBC’s Fast Money.
“I still think it will be quite a long time until an ETF is approved. The last asset class to be approved for ETF certification was copper, and copper has been on earth for 10,000 years. The main thing to remember is that bitcoin is very early-stage venture, but has real-time price feed – and that’s a unique thing. People get excited about the price and overreact.”
Additionally, Mr. Morehead says that instead of panicking over the ETF news, investors should be very optimistic about Bakkt, the project that the Intercontinental Exchange is building with Microsoft and Starbucks.
Nine Bitcoin ETFs To Be Reviewed In The Next Two Months
If the news about Bakkt is not enough for investors to start placing their funds in virtual currencies, then they should know that in the next two months, the SEC will be deciding on nine different Bitcoin ETFs.
The SEC will have to make final decisions on important ETFs. With past submissions form ProShares, Direxion and GraniteShares, 10 bitcoin-related funds are being weighed by the SEC.
The deadlines are set according to the date the proposals have been published in the U.S. Federal Register. The first decision is made 45 days after the publication, and it can be delayed 240 days after the proposal is published in the Register.
September is the month to follow because on the 15th there will be made a decision on two funds presented by GraniteShares after being proposed on January 5. Furthermore, the deadline for Direxion’s four funds is September 21, 2018.
As mentioned in other articles at UseTheBitcoin, the final decision about the SolidX VanEck should be made before February 2019.