A graphic with no description

After a bruising performance this spring, things were finally looking up for bitcoin in July, with the digital currency tacking on $2,000 in a matter of weeks. But it is back on the slide once again — a move that accelerated on Wednesday after Wall Street’s top regulator pushed back an eagerly-waited decision on a bitcoin ETF.

The cryptocurrency traded at $6,526 to the dollar in morning trading in London, down from $7,032 at the end of Sunday. It had risen as high as $8,496 just two weeks ago, on July 24, before starting its latest descent.

Wednesday’s fall came after the US Securities and Exchange Commission announced overnight that it would delay its decision on the SolidX Bitcoin ETF, which is sponsored by SolidX Management with marketing assistance from Van Eck Securities. The fund would hold bitcoin and seek to track the digital currency’s price.

The SEC had been reviewing a rule change proposed by the CBOE’s BZX exchange, which would be required for the ETF to list. The regulator said it had received more than 1,300 comments since it began seeking public opinion on July 2.

A decision had been expected by next week, but with the delay, the SEC now has until the end of September to make a decision.

Anticipation over the SolidX ETF has been high since the SEC ruled last month that the Winklevoss twins could not list and trade shares of a similar fund. At the time, the SEC emphasised that its decision was based on the specific proposal and not “whether bitcoin, or blockchain technology more generally, has utility or value as an innovation or an investment”.

adam.samson@ft.com

Get alerts on Cryptocurrencies when a new story is published

Copyright The Financial Times Limited 2019. All rights reserved.
Reuse this content (opens in new window)

Comments have not been enabled for this article.

Follow the topics in this article