Bitcoin Falls Below $8,000 After SEC Shoots Down Winklevoss ETF
Bitcoin prices declined below $8,000 today, falling slightly after the U.S. Securities and Exchange Commission (SEC) opted to reject the second Bitcoin Exchange-Traded Fund (ETF) proposed by Cameron and Tyler Winklevoss.
The SEC cited concerns about investor protection and market manipulation when explaining its decision to reject the proposed ETF.
Following this announcement, Bitcoin prices moved below the $8,000 mark, falling to as little as of $7,916.88, according to the CoinDesk Bitcoin Price Index (BPI).
The cryptocurrency has since recovered, fluctuating largely between $7,900 and $8,000 and trading at $7,924.51 at the time of report, additional BPI figures show.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
This brief, shallow decline contrasts significantly with the sharp drop that Bitcoin prices suffered when the SEC shot down the first Bitcoin ETF proposed by the Winklevoss twins in March 2017.
That month, Bitcoin fell from a high of more than $1,300 to a low of less than $900, according to the BPI.
Bitcoin has enjoyed some sharp gains over roughly the last month.
Even after experiencing its temporary dip today and falling to an intra-day low of slightly more than $7,900, the digital currency was up more than 35% from its recent low of $5,785.43 hit in June.
Interestingly enough, many market observers had pointed to anticipation surrounding the Winklevoss’ proposed ETF as a significant cause of Bitcoin’s recent gains, noted eToro senior market analyst Mati Greenspan.
“The ETF market is huge,” he stated in his daily newsletter, emphasizing that approving the proposed fund “could potentially open the market to a world of new well-funded buyers.”
Disclosure: I own some Bitcoin, Bitcoin Cash and Ether.
Update: This article was updated on July 27, 2018. The piece quotes eToro senior market analyst Mati Greenspan as stating that anticipation surrounding the Winklevoss ETF was helping drive Bitcoin prices higher, citing his daily newsletter as the source of this input. However, his newsletter was actually referring to excitement involving the VanEck ETF (the VanEck SolidX Bitcoin Trust) as providing Bitcoin prices with tailwinds.