Bitcoin (BTC) Above $51,000 Despite the U.S. SEC Rejecting Two Bitcoin Spot ETFs

Bhushan Akolkar
December 24, 2021
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Coinbase Data Signals Institutional Investors Buying Bitcoin Again

Well, it’s Christmas time and so is the renewed excitement among Bitcoin investors. The Bitcoin price has climbed back once again above $50,000 for the first time in two weeks as investor sentiment turns positive across financial markets just before the holidays.

As of press time, Bitcoin is trading 5.22% up at a price of $51,031 with a market cap of $966 billion. After setting up a record high of $69,000 in November last month, Bitcoin has been continuously moving sideways correcting more than 30%.

With inflation reaching new highs and the Fed announcing tighter monetary policies money has been moving from volatile asset classes like crypto and equities to other safe-haven instruments. While many see Bitcoin as a hedge to equities, it hasn’t been that so far! Ross Mayfield, an investment strategy analyst at Baird told Bloomberg:

“I view Bitcoin as a high-beta risk asset. When risk appetite is up, it’s up big. And when risk appetite is down, it can be down big. It’s not perfectly correlated, that’s definitely too simple of a read, but it’s certainly not a volatility hedge.”

SEC Rejects Two Bitcoin Spot ETFs

Well, today’s price surge comes despite the U.S. Securities and Exchange Commission (SEC) rejecting two Bitcoin spot ETFs. While the SEC has shown familiarity with the Bitcoin Futures ETFs, it has shown strong objection to the approval of the physically-backed Bitcoin ETF.

The U.S. SEC has rejected two Bitcoin spot ETF proposals from Valkyrie Investments and Kryptoins stating that they have failed to meet the regulator’s requirement of preventing manipulative practices and frauds.

The spot Bitcoin ETFs remain as the holy grail of investment products and this is likely to bring massive liquidity to Bitcoin. Eric Balchunas, a Bloomberg Intelligence analyst, calls the latest rejection as a “Scrooge-jection”. He further added:

“The fact that the SEC is disapproving faster than they needed to — we were optimistic about futures, but we’re not confident in a 2022 approval”.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.