On Tuesday, the American Securities and Exchange Commision announced that it would be delaying its verdict on the Bitcoin ETF backed by the Cboe, VanEck, and SolidX. While many saw this as a set of bearish news, some investors remain hopeful, including well-known crypto analyst Brian Kelly.
SEC Postpones ETF Verdict Until September 30th
Bitcoin ETFs have been in the works for years now, with many seeing this vehicle of investment as the key to global adoption. With today’s release of an SEC document, it appears that investors will need to wait a few more months before getting their hands on the world’s first crypto-backed ETF.
In a two-page document, the regulatory body noted that it would be pushing back its verdict date by 45 days, to September 30th to be exact. The SEC added that this is within its rights to do so, citing certain laws that pertain to this case. In a document signed by Eduardo Aleman, an assistant secretary at the SEC, the Commission wrote:
The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change… The Commission, pursuant to Section 19(b)(2) of the Act,6 designates September 30, 2018, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.
This news quickly reached all corners of the cryptocurrency industry, with analysts, experts, and community members chiming in on their expectations for the ETF.
One tweet which stood out to many investors was one from Jake Chervinsky, an American lawyer active in the cryptosphere. Chervinsky wrote that this most recent announcement was “(an) expected result,” but was executed earlier than he expected. The lawyer also added that he predicts another extension on the final verdict, with the date going as late as December 29th, or even late February.
Brian Kelly: “If You Are Selling Today, It’s The Wrong Way To Do Crypto Investing”
Although this verdict may have been anticipated, the cryptocurrency market saw a sell-off en-masse, with bitcoin posting a 5% loss in the past 24 hours. Altcoins followed and arguably had it worse in comparison to the foremost cryptocurrency, with coins like ethereum and litecoin seeing 7% losses. This pullback was the result of investors seeing this document as a bearish signal for the ETF, which may result in the slow-down of cryptocurrency adoption and the inflow of fiat currency.
However, Brian Kelly, CNBC’s in-house cryptocurrency analyst and the CEO of the crypto-centric BKCM fund, has remained bullish in the face of this bearish market. Speaking on Fast Money, Kelly told panelists that he expects another extension, citing reasons of market maturity and regulatory uncertainty. This sentiment stays in-line with the sentiment held by the aforementioned lawyer.
Despite the fact that an extension may be seen as a negative price signal for the market, the BKCM CEO added that investors should not be selling their cryptocurrency holdings following this announcement. He elaborated, stating:
“We’ve had this big runup, we’ve had a little bit of a sell-off today. If you are selling today after this decision, its the wrong way to do crypto investing. There is more to the (cryptocurrency) story than a Bitcoin ETF”
While not explicitly stated, this attitude held by the investor indicates that he expects Bitcoin to do well in a long-term outlook, regardless of the state of the industry today.
Title Image Courtesy of Andre Francois