Bitcoin Sheds 12% in Last 24 Hours

Related: Bitcoin Bounce Ignites Talk of Another Comeback

Bitcoin ETFs Await

The price of Bitcoin reached a high of $20,000 in late December of last year, but has since lost over 60% of its value as digital currencies continue to face concerns regarding manipulation and security. Despite efforts by various firms to bring Bitcoin and other cryptocurrencies under regulatory control, Bitcoin ETFs continue to face a legal labyrinth to legitimacy in the investment space and despite efforts by firms, they keep encountering their own Minotaur in the form of the Securities and Exchange Commission.

Brian Kelly, founder and CEO of BKCM LLC, an investment firm focused on digital currencies, is optimistic that a Bitcoin ETF will finally slay the Minotaur and make its way into the investing world, but it will take time and must address certain issues:

  • February 2019 is likely earliest for an ETF–the US Securities and Exchange Commission postponed their decision on a bitcoin ETF until late September, but Kelly foresees the decision getting pushed back further to February.
  • SEC needs surveillance ability–how will the SEC monitor instances of fraud rather than prevent it
  • Futures market is not mature enough

In an attempt to fall under the governmental regulation of the SEC, the cryptocurrency industry has been unable to bring this into fruition, starting with the Winklevoss Capital Management founders Cameron and Tyler Winklevoss application, which was rejected twice.

For more information on the cryptocurrency market, visit the Bitcoin category.