The recent decision by the United States Securities and Exchange Commission (SEC) to extend their deadline for another Bitcoin ETF decision however seems to have stabbed a huge hole in our optimism, and of course the value of the markets.
The SEC has since said it would make final decisions on nine such proposals within the next two months, by September 30.
The news was taken as a potential blow to the cryptocurrency market's credibility.
Although the ETF decision is exclusively in regards to Bitcoin, many alt coins are showing worse losses than the world's largest cryptocurrency by market cap.
This ETF was proposed back in June 20, 2018.
Earlier, VanEck and SolidX submitted joint application to develop VanEck SolidX Bitcoin Trust that will be protected from stealing and. A second attempt by Cameron and Tyler Winklevoss, founders of crypto exchange Gemini, to list their ETF was recently rejected by the SEC. An ETF offering was to further legitimize BTC and cryptos to the investing public. The SEC is anxious about the effects that virtual currencies could have on individuals without important amounts of money.
SEC's decision to postpone the verdict until September 30 worsened market sentiments. The SEC explains that the former did not meet the requirements to ensure that their ETF is created to protect investors from fraudulent and manipulative practices. Digital assets have now lost about $600bn since crypto-mania peaked in January, equivalent to erasing the entire market value of Visa twice over.
At time of writing, the total market cap is at $221,803,776,183 (4pm, ET), down about 11 per cent in 24 hours. Bitcoin ETFs would, in fact, help to bring in more institutional investors, where the real money is.
While not explicitly stated, the attitude held by BKCM's CEO may imply that he sees more in store for this market in the near future. He urged them to feel optimistic about the positive news. Perhaps the regulatory body, in an effort to not too fast, just wants more time to analyze. It is worth noting though that within this, the SEC could extend their deadline to 90 days if they saw fit.
The Bitcoin bulls are suffering right now as the Bitcoin price plummeted after taking a major downward pivot on this Wednesday.