In an attempt to fall under the governmental regulation of the Securities Exchange Commission, the cryptocurrency industry has been unable to get a Bitcoin ETF to the capital markets like the Cameron and Tyler Winklevoss application, which was rejected twice. That, however, hasn’t stopped their efforts as the brothers, under their digital exchange Gemini Trust Company, debuted the Gemini dollar, which is a regulated stablecoin that allows users to send or receive U.S. dollars on the Ethereum cryptocurrency network.
While not the SEC, the Gemini dollar does have approval from a governmental board–The New York Department of Financial Services. The stablecoin cryptocurrency mimics the value of the U.S. dollar, following the greenback on a one-to-one basis.
The debut of the Gemini dollar aims to bring the U.S. banking system and the cryptocurrency market closer together. Converting U.S. dollars to Gemini dollars allows users the adaptability to transfer their money globally in various markets.
“It is really a matter of bringing your US dollars on to the blockchain and making them borderless 24/7,” Tyler Winklevoss told CNBC.
“If something is a good store of value, you don’t want to spend it,” Winklevoss added.
Bitcoin’s price continues to face downward selling pressure, but has had some stability at the $6,000 price level. Its price has dropped 1.25% the last 24 hours and currently stands at $6,340.63 as of 11:00 a.m. ET.
The price of the leading cryptocurrency has been knocked down lately by news that Goldman Sachs is on the verge of scrapping its plans to have a digital currency trading desk. The ebbs and flows of Bitcoin’s price have been dependent upon news of institutional trading firms like Goldman Sachs and BlackRock getting involved in cryptocurrencies.
Despite this latest news, some cryptocurrency analysts are still bullish on the future of Bitcoin.
“Obviously the Goldman news has been disappointing to those Bitcoin holders, people freaking out that ‘a big bank trading desk is backing off, maybe I should to'” said CNBC “Futures Now” trader Brian Stutland. “But I would say, ‘Forget about those guys. Bitcoin was made to deposit off the transactions of bank sheets–we don’t need them.'”
Related: Bitcoin Bounce Ignites Talk of Another Comeback
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 make its way into the investing world, but it will take time and must address certain issues, such as surveillance ability to monitor fraud and a mature futures market.
A Bitcoin ETF application from investment firm VanEck and financial services company SolidX is currently pending review by the SEC and will decide on whether to accept or reject the application by the end of this month.
For more information on the cryptocurrency market, visit the Bitcoin category.