They Want To Take Crypto Under Control: How To Make Money On American Officials
The U.S. Securities and Exchange Commission (SEC) has delayed making a decision on whether to approve five bitcoin-related exchange-traded funds (ETFs) until September. The company Direxion Investments filed an ETF proposal to SEC in January. The firm wants to legally launch 5 funds, one of which will match bitcoin's price and four of which are based on the cryptocurrency's price movements. Crypto society is excited about bitcoin ETF listing.
What is ETF and who are bears and bulls
There are different stock market instruments with different functions. For example, futures are instruments of risk management (hedging). They are like a counterweight that hinders the market growth. The bears (traders who earn money on market downturn) make a fortune by using them. The bigger market downturn is, the more they earn.
First the authorities launched bitcoin futures. It led to a large market correction. The bears entered the market and made big money. Now it’s time to decide when the bulls (those who earn money when securities prices increase) will join the bears. The financial instrument the bulls use is ETF – exchange-traded fund. Investors put their money in ETF, not in bitcoin itself. The price index rises, the bulls earn. Before this, stockbrokers could not legally bet on rise, only short stocks (bet on their decline).
Why SEC gets rid of risks and who is behind this
The SEC promised to decide what to do with ETF by 21st September. Here is what the financial watchdog says in official statement «The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change».
As we see, the SEC does not reveal the reasons for such a decision. The SEC could justify that it poses a threat to the state. What actually made the Commission act like this? Seems like someone of stockbrokers have not bought crypto up.
How SEC’s decision will impact the market
While everyone was expecting ETF, the market started to grow. When bitcoin-ETF is approved, the market growth will be significant. After gold-ETFs launch the price of gold rocketed 300%. It will be even more exciting to see what happens to bitcoin.