- October 14, 2021
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Let the speculation begin! The official Twitter account of the United States Securities and Exchange Commission (SEC) has reissued a bulletin educating investors on “the potential risks and benefits” of a Bitcoin ETF or “fund” which has the cryptocurrency community spiraling over the possible implications.
Those implications are that the tweet is a subtle hint that a Bitcoin ETF is near approval – something that a decision should soon be made on before the month is over. Could this be the news event that sends the cryptocurrency to new all-time highs?
Speculation Runs Wild As SEC Tweets About BTC “Fund”
As a branch of the United States government, the SEC isn’t just tasked with protecting investors, it must also educate investors as part of planning and prevention.
For example, the SEC devised the Howey Test to determine if an asset is a security or otherwise. If it is, it would then fall under its purview. In the past, the SEC created a Howeycoin website specifically to show crypto investors what a scam would look like.
Related Reading | This Perspective Shows What The Last Leg Up In Bitcoin Looks Like
Their most recent tweet has shared a reminder about the potential pitfalls of “investing in a fund that holds Bitcoin futures contracts,” along with a link to learn more.
With potential Bitcoin ETF – which stands for exchange-traded fund – approvals on the horizon, speculation immediately turned to how the tweet basically meant an ETF approval was “inevitable.”
Well, guess this means an ETF is inevitable.
— unusual_whales (@unusual_whales) October 14, 2021
Could The Debut Of A Futures-Based Bitcoin ETF Lead To Cycle Climax?
But it is important to note that the link shared by the SEC’s investor education handle links off to a page created in early June, and might not be the smoking gun connection to a Bitcoin ETF approval conspiracy that the community thinks it is.
Still, with several potential Bitcoin ETFs that could be approved as early as this month, the timing certainly is suspect. “VanEck, ProShares, Invesco, Valkyrie and Galaxy Digital” will all be decided on before the month is over, according to CNBC.
An approval or denial could be a big deal | Source: BTCUSD on TradingView.com
During the bear market, when an ETF would fail to pass approvals, Bitcoin price would tank as a result. Another failure here could caused a double-top scenario in the leading cryptocurrency by market cap, while an approval would likely lead to a blitzkrieg of full blown BTC FOMO.
Related Reading | Bitcoin Is “The Loudest Monetary Fire Alarm” In Finance
The SEC’s tweet does reference a fund that holds Bitcoin futures contracts, which in theory could allow institutions to gain access to short positions on the cryptocurrency. The last time a major new platform debuted that let institutions short BTC, it was the launch of CME Bitcoin futures, and it was the exact top of the last cycle.
Will the eventual Bitcoin ETF be this cycle’s CME?
Follow @TonySpilotroBTC on Twitter or via the TonyTradesBTC Telegram. Content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com
