“This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro”
- VanECK withdraws the Bitcoin ETF application
- Bitcoin TPS still growing
- Crypto Adoption rising in Iran
VanECK Bitcoin ETF becomes the latest casualty of US Government Shutdown
We’ll all the excitement around Bitcoin ETF may have ended now as the most hoped ETF application of VanECK seems to have fallen calamity of the US Government Shutdown. The deadline for a decision was February 27th but seems VanECK has now withdrawn its application. While it’s disappointing, but it’s not something that was not anticipated. As it has been noted several times, this proposal had a very slim chance of success. SEC Chairman Jay Clayton had already stressed that the Bitcoin market is not yet mature enough for an ETF. It’s not just the news or Clayton, even the recent price action seems to confirm this, as there have a number of price spikes due to the low liquidity lately.
The government shutdown seems to have put further strain on this process. If there was a hope of convincing the SEC before the deadline, it has now disappeared. So, rather than letting the application be rejected, VanECK has simply withdrawn it – thus denying the SEC any opportunity to deny it. Clearly a power move by VanECK.
The price of Bitcoin did decline slightly at the time of the news but is still holding well at the $3,500 support level. The markets relaxed response to this news is a clear sign that investors are starting to understand. The crypto market is not dependent on any government or financial institution and no single product or service has the power to make or break bitcoin.
BTC fundamentals going strong
It’s been past few months that Bitcoin fundamentals are getting strong. Yet again, The transaction rate on the bitcoin blockchain is now at its highest level in a year, which is kind of cool. This is a good indicator that shows usage of bitcoin is growing despite the bear market.
While the TPS shows a global picture, specifically crypto adoption is seen rising in Iran as the Government is mismanaging the economy. Unfortunately, however, there isn’t any real way to confirm this, other than the testimonials available in some press. Some more coverage in a day or two should give the audience more clarity.
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Mati Greenspan is the Senior Market Analyst at eToro, a global social trading and investment platform. Mati is a licensed portfolio manager in the European Union and his main focus is on macroeconomic analysis, portfolio diversification and cryptocurrencies. Follow him on Twitter at @matigreenspan