As some of you may already know about it, that SEC finally rejected the ETF that was proposed by Proshare Capital Management LLC. The rejected came in today and SEC released the official document confirming the same.
SEC document Link:
https://www.sec.gov/rules/sro/nysearca/2018/34-83904.pdfNow my point is that, it is actually good for the market. The market was living on a false hope and SEC finally pulled the plug out. No more false hope will certainly help to recover the market. Newbies were excited about the news of ETF without knowing the fact. Let me point out a few for noobs.
1. The proposed ETF was meant for institiutional investors and not for common people like us.
2. The underlying asset for the proposed ETF was CME future contracts. No physical bitcoins were proposed to be purchased resulting zero impact.
3. SEC used your excitement to control the market price of bitcoin to some extent. With every delay announcement, market took a dip because you guys thought this ETF will be a great addition to the market. Wrong!
Now the ETF has been rejected by SEC, please don't let your emotion to ruin the market. The less numbers of regulated products around crypto, the better! The decision will help the market survive without intervention of SEC. So rejoice and cheer!
All of these factors that you have taken time to itemise does not change anything if the effect is not seen in the price of bitcoin as that is the language the newbies and even majority of participants understands. Every other thing on the contrary are merely expression of opinion that does not add real value.
In this dispensation of ETF, I was happy that we can all move on to something else rather than the situation where all discussions around crypto and bitcoin specifically was hanging around ETF approval or disapproval. Another thing worthy note is that since the news broke, (at least that I read about it) the price of bitcoin has made some appreciation which means the effect is not felt and participants quickly adjust to the current phenomenon.