Bitcoin And Ethereum Suddenly Soar Despite SEC Blow

Bitcoin And Ethereum Suddenly Soar Despite SEC Blow

 

Bitcoin and ethereum, the two biggest cryptocurrencies by market value, suddenly soared yesterday despite the U.S. Securities and Exchange Commission (SEC) rejecting the latest attempt at creating a bitcoin exchange-traded fund (ETF).

The bitcoin price is up some 5% over the last 24-hour trading period, while ethereum has risen almost 6%, both adding to gains earlier in the week . The bitcoin and cryptocurrency market has swung wildly over the last few weeks as traders and investors seek direction. Getty Images "The news that the SEC is not going to approve a bitcoin ETF has not impacted the market with bitcoin heading higher again," Marcus Swanepoel, chief executive of London-based bitcoin and cryptocurrency exchange Luno, wrote in a note this morning.

"Overall, global markets are also up and we are seeing some positive sentiment."

The SEC yesterday ruled the Bitwise Asset Management ETF proposal, filed with the NYSE Arca stock exchange, did not meet legal requirements to prevent market manipulation or other illicit activities.

"Because, among other things, [Bitwise and NYSE Arca] has asserted that 95% of the bitcoin spot market consists of fake and non-economic activity, but has not established that it has, in fact, identified the ‘real’ bitcoin market, or that the ‘real’ bitcoin market is isolated from the fraudulent and manipulative activity, we find, in each case, that NYSE Arca has not met its burden to demonstrate that its proposal is consistent with the requirements … and therefore the Commission disapproves this proposed rule change," the SEC said .

The SEC […]