Bitcoin continues to ride a rollercoaster of cryptocurrency uncertainty. Consider it doubtful the pioneers of virtual currency ever believed establishing “virtual money” would be without troubles. Traditional venues of banking and finance rarely embraced Bitcoin enthusiastically. This resistance, in turn, created bumps in the proverbial road regarding the value of Bitcoin. Recently, a delayed decision made by the Securities Exchange Commission (SEC) in the United Stated hammered the value of Bitcoin. In fact, Bitcoin lost a massive amount of value due to the delay.
The SEC chose to delay a decision about the establishment of an exchange-traded fund focusing on Bitcoin. As a result, the price of Bitcoin lost a staggering $9 billion. Investors and traders in Bitcoin felt the impact of such devaluation. Bitcoin lost 6% of its value overnight.
The exchange-traded fund (ETF) comes from the brain trust of VanEck and SolidX. For those not familiar with ETFs, these are funds traded on the stock exchange. ETFs do not, however, derive their value from stocks. Various other assets such as real estate, precious metals, and more collectively form the basis of ETFs. The SEC’s decision now delays the arrival of cryptocurrency to the assets underlying an ETF.
On its own, VanEck worked hard to establish a Bitcoin ETF. Two times previously, the SEC declined approval. VanEck has not been alone in its attempts. Other companies tried and failed as well. The SEC seems resistant at this time. That said, final approval or decline on the new joint-venture ETF won’t arrive until September 30th.
In time, ETFs and other investment vehicles featuring Bitcoin and other cryptocurrencies will likely emerge. The landscape appears to be too early for cryptocurrency embrace by the traditional investment world. The radical nature of Bitcoin seems too volatile right now. Concerns over lack of regulation further keep Wall Street worried about embracing virtual currency. All this may change in the future barring a total collapse of the cryptocurrency market.