BITCOIN PRICE CONSOLIDATES AS THE SEC CONSIDERS ETF PROPOSAL
This week, the price of Bitcoin remained unchanged following large swings that were experienced early in the month. On October 10th 2018, the price declined from $6525 and reached a low of $6030. A week later, the price moved from $6170 to a high of $6720. This was the biggest intraday change in months. After that, it declined to $6325. It has been largely unmoved since then.
Discussions surrounding Bitcoin ETFs have continued after the SEC met with top representatives from VanEck and SolidX to talk through their ETF proposals. The meeting was also attended by representatives from CBOE, which will list the ETF.
In the presentation made by VanEck, the company said that it had started working on the ETF in 2015. After the SEC rejected the initial ETF proposal in 2015, the company went on to tweak it based on the guidelines issued. Even with the tweaks, the ETF proposal was rejected again this year. Each share of the VanEck SolidX Bitcoin Trust is set to cost a hefty $200,000. This means that it’s aimed at large institutional investors rather than retail investors.
It is likely that the SEC will accept the ETF proposal by VanEck. This is mostly because due to the reputation the company has built over the years. It has more than $48 billion in assets under management and runs some of the biggest ETFs in the industry.
However, there is no clear indication that the ETF will attract demand from institutional investors.
The BTC/USD pair is trading at 6376. It has been largely unchanged as shown in the chart below. This consolidation means that the pair could see a breakout in either direction.