Arguably the world’s most popular and largest digital currency by market value Bitcoin (BTC), just celebrated its tenth year anniversary. The top crypto has made a number of strides in a bid to facilitate legitimacy for altcoins since it was launched ten years ago. However, experts believe that the digital asset won’t be a mainstream investment option if the Securities and Exchange Commission doesn’t embrace it. Meaning it has to be fully regulated before it can become mainstream.
Bitcoin (BTC) Price Today – BTC / USD
SEC Still Uncertain About Bitcoin (BTC) and Altcoins
To date, the SEC has not given a go-ahead signal for any Bitcoin (BTC) related projects. The regulatory commission has already rejected plans for a Bitcoin ETF from Direxion, and ProShares as well as the Winklevoss twins. Recently, Bitwise Asset Management filed with the SEC for the implementation of an ETF that would track the performance of Bitcoin (BTC). Wilshire Phoenix Funds also filed to sell their shares of an ETF that would own a combination of Bitcoin (BTC), the USD and short-term Treasury bills.
The SEC has also delayed the decision regarding the launch of another bitcoin ETF given by VanEck. Because the shutdown has forced the SEC to operate with limited employee, the issues stated above the will likely not be tackled until government reopens.
The SEC Hasn’t Responded to Requests for Comments Regarding its Stance on the Bitcoin (BTC)
When asked to give updates regarding the pending approvals of several Bitcoin projects the SEC didn’t respond. Matt Hougan, who serves as the global head of research at Bitwise Asset Management, believes the SEC is only being prudent and will not rush to give the go-ahead signal to ETFs for an evolving asset class.
According to him, the Securities and Exchange Commission has taken a similarly cautious approach for gold ETFs a number of years ago before going on to approve many of them. The Winklevoss twins also declared their support for the SEC’s cautious approach in an interview this week. They have decided to wait years for the SEC to approve their ETF product if that’s what it will take.
Digital Currencies Such as BTC Present Many Reasons for Caution
As of press time, the price of the bitcoin (BTC) is $3,650 to one USD after it was worth about $20,000 only 13 months ago. This price shift downward means Bitcoin’s (BTC) value has fallen by 80% since that time. The situation with the digital currency has been compared to some of the greatest financial panics in recent history.
Bitcoin optimists such as Matt Hougan believe the worst is over. He believes that there’s already evidence of mainstream acceptance.
Back in 2017, Bitcoin futures was launched on the Chicago Mercantile Exchange and the Chicago Board Options Exchange. Fidelity Investments also launched a trading platform that listed Bitcoin (BTC) and other digital currencies in 2018.
Jeff Gundlach a Bitcoin bull who works with DoubleLine Capital expressed a positive stance as well. He told investors that the Bitcoin price could rally in the latter part of 2019 and get back to as high as $5,000 which is a very strong possibility. Although such a rally is nowhere near the high Bitcoin attained 13 months ago, it still is a 35% gain in the value from the current price levels.