SEC Approves Bitcoin ETF Taking Everyone by Surprise Leads to Market Rise

In what can be called as a surprise move, the United States Securities and Exchange Commission(SEC) which has been procrastinating over its decision to approve Bitcoin-based exchange-traded funds (ETFs.) for months have decided to approve not one but two applications for Bitcoin ETF.

The two Bitcoin ETF will be launched by Bitwise Asset management and VanEck Investment firms.

The SEC has been postponing the decision dates for over six months and the most recent delay came only this 29th of March, so the sudden approval out of blue has taken many by surprise.

Crypto-Trade Market Responds in Green

As soon as the news went public, the crypto trade market has responded positively and the price rally has seen gradual and strong upward movement with the whole market adding around $13.8 Billion.

The continuous delay has created quite a public outrage towards the SEC institution especially after the announcement on 29th March. The committee held an emergency meeting over the weekend. According to the Reuters report, the SEC Chairman Jay Clayton got on the phone with other members on Saturday and decided to make a final decision once and for all.

However, the sudden rush and the emergency meeting is now being criticized by many calling it unorthodox and unnecessary. Violet Baudelaire, professor of Economics and Public Policy at MIT is one of these critiques who believe the decision was taken in a hast. He said,

“I believe Clayton was attempting to counteract the narrative that the American government is unable to act without shutdowns and other shades of political chaos. However, this kind of rash action could send the message that the SEC is perhaps not acting with as much caution as it should be exercising.”

VanEck’s latest Bitcoin ETF application was filled in January, while Bitwise filled an application on February 15th with a condition that the SEC would make a decision within 45 days to give their verdict on the application, however, the committee permitted its decision-making time to expand to 90 days if needed.

Last week Bitwise pressured the committee to approve Bitcoin ETF and pointed out that more than 90% of the current Bitcoin trading volume could be fake.

The approval of the SEC has received mixed feeling from the community where a few in favor of the decision believes the current decision would help the market to finally start a bull run, while the critiques believe the latest approval would only increase the centralization.

Happy April Fool’s Day!