Hopes for a Bitcoin: USD/BTC (BTC=X) exchange traded fund are being dashed
Hopes for a bitcoin exchange traded fund are being dashed, for now.
Cboe Global Markets pulled its application on Wednesday for what would be the first-ever bitcoin exchange traded fund, or ETF, according to a filing with the Securities and Exchange Commission. The SEC’s approval is needed before VanEck and SolidX partners would be able to list their fund on Cboe’s BZX exchange.
Bitcoin advocates have been eagerly awaiting the approval of a bitcoin ETF, which many say would usher in new buyers to the struggling asset class. The world’s largest cryptocurrency is down more than 80 percent from its high reached during the retail-driven frenzy in 2017, and was down 1 percent, near $3,540, on Wednesday.
The SEC rejected a second attempt by Cameron Winklevoss and Tyler Winklevoss, founders of crypto exchange Gemini, to list shares of a separate bitcoin ETF this summer. The financial watchdog cited concerns over investor protection, fraud and manipulation of bitcoin, especially since much of the trading is done in unregulated offshore markets.
SEC Chairman Jay Clayton said in November he needed to see better market surveillance and custody for cryptocurrencies before being “comfortable” with a bitcoin ETF.
VanEck’s founder and CEO, Jan Van Eck, told CNBC on Wednesday that it is ready to answer many of the SEC’s questions. But in order to make its case “clearly and convincingly to the regulators” it needs the government to reopen.
“We were trying to do that but we obviously can’t have meetings when they’re shut down,” VanEck told CNBC’s “ETF Edge. ” “Instead of trying to slip through or something, we just had the application pulled.”
The ETF approval process, and other SEC applications for things like initial public offerings, remain on hold as Democrats in Congress and President Donald Trump are locked in a stalemate over funding for a border wall.
The agency has staff “available to respond to emergency situations involving market integrity and investor protection, including law enforcement,” but most other functions are closed, the agency said on its website.
VanEck told CNBC the group will refile and re-engage in bitcoin ETF discussions “when the SEC gets going again.”
Overall, the bias in prices is: Downwards.
The projected upper bound is: 3,956.40.
The projected lower bound is: 3,101.23.
The projected closing price is: 3,528.81.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
An inverted hammer occurred. If this occurs during a downtrend (which appears to be the case with FOREX BTC=) it implies a reversal. Look for a confirmation of the reversal on the bar.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
A shooting star occurred (a shooting star has a small real body near the bottom of the candle and a long upper shadow). During an uptrend the long upper shadow indicates that the bears are gaining control and a top may occur.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 32.5107. This is not an overbought or oversold reading. The last signal was a buy 8 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 42.70. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 38 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -86. This is not a topping or bottoming area. The last signal was a buy 10 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 13 period(s) ago.
Rex Takasugi – TD Profile
FOREX BTC= closed down -12.240 at 3,532.580. Volume was 74% below average (consolidating) and Bollinger Bands were 44% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 3,579.91 3,662.35 5,674.68
Volatility: 39 75 67
Volume: 64,533 83,413 80,920
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX BTC= is currently 37.7% below its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BTC= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on BTC= and have had this outlook for the last 9 periods.
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