Crypto Markets See Modest Gains as SEC Commissioner Hints at Bitcoin ETF Approval
The cryptocurrency market stabilized on Thursday, with most of the top 20 coins registering modest gains through the early part of trading. Meanwhile, a commissioner at the U.S. Securities and Exchange Commission (SEC) sent a strong signal that a bitcoin exchange-traded fund (ETF) will eventually be approved.
The cryptocurrency market capitalization clawed back above $112 billion on Thursday after falling to its lowest level of the year. At the time of writing, the total market was valued at $112.1 billion, according to CoinMarketCap.
Altcoins and tokens were the primary gainers, with bitcoin SV climbing 9.1% to $63.70. Bitcoin cash rose 2.8% to reach $116.41. Litecoin’s price advanced to $33.47, having gained 2.3%. XRP edged up 0.7% to $0.2937. Ethereum climbed back above $105 following a gain of 1.6%.
Looking further down the crypto market rankings, Ethereum Classic rose 4.3% to $3.86. NEM jumped 8.8% to $0.0374.
Bitcoin was virtually unchanged compared to 24 hours ago, trading just above $3,400. The leading digital currency fell to fresh seven-month lows on Wednesday.
A closer breakdown of the crypto top 20 is provided below:
Bitcoin ETF is Coming (Eventually)
SEC Commissioner Robert J. Jackson Jr. believes it is only a matter of time before the securities regulator approves a bitcoin ETF. In a yet-to-be released interview with Congressional Quarterly, Jackson said approval of a bitcoin-backed fund is “inevitable.”
“Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so,” Jackson said, according to excerpts from the interview shared on Twitter by Drew Hinkes, an Adjunct Professor at New York University.
Jackson added: “Getting the stamp of approval from the deepest and most liquid capital markets in the world is hard, and it should be. Once we make it available to everyday mom and pop investors, we are taking risks that Americans can get hurt.”
Interesting article covering the UCC implications of local/community currencies as collateral- w/broad implications for #crypto #lending, using BerkShares as an example. Few know that local non-govt currencies are legal & have a long history. We discuss these in my @nyulaw class. pic.twitter.com/38mEml99Tu
— Drew Hinkes (@propelforward) February 7, 2019
Jackson, the Commission’s lone Democrat, said the SEC made a mistake in rejecting the Winklevoss Bitcoin Trust. The fund was rejected for a second time last July in a 3-1 vote. Commissioner Hester Peirce, the lone dissenter, issued the following statement on July 26:
“I respectfully dissent from the Commission’s order disapproving a proposed rule change, as amended, to list and trade shares of the Winklevoss Bitcoin Trust on Bats BZX Exchange, Inc. (“BZX”).”
The debate over a bitcoin ETF now centers on a joint application submitted by VanEck and SolidX, which proposes to list a physically-backed bitcoin fund on CBOE’s BZX Equities Exchange. The proposal was withdrawn temporarily last month just before Congress reached a temporary agreement to end the partial government shutdown. VanEck and its partners re-submitted their application last week, allowing the agency more time to consider.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.