News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
More View more
Real Time News
  • Norges Bank Governor says currency market functioning well adds that they have no particular target level for NOK
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/2NE7dnWMM4
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/9:30 AM GMT to learn about how you can become a better trader. Register here: https://t.co/WeWGKtdlyz https://t.co/F0bT0tnjiY
  • $NOK slips on the release given market pricing had been for a signal of a slightly earlier hike than previously forecast https://t.co/iQcZ70pCII
  • 🇩🇪 Ifo Business Climate (SEP) Actual: 93.4 Expected: 93.8 Previous: 92.5 https://www.dailyfx.com/economic-calendar#2020-09-24
  • Norges Bank - The policy rate forecast is little changed since June 2020 Monetary Policy Report and implies a rate at the current level over the next couple of years, followed by a gradual rise as activity approaches a more normal level $NOK
  • 🇳🇴 Norges Bank Interest Rate Decision Actual: 0% Expected: 0% Previous: 0% https://www.dailyfx.com/economic-calendar#2020-09-24
  • 🇩🇪 Ifo Business Climate (SEP) Actual: 93.4 Expected: 93.8 Previous: 92.6 https://www.dailyfx.com/economic-calendar#2020-09-24
  • Have you been catching on your @DailyFX podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/HbVXBTslrS
  • SNB will detail FX interventions on a quarterly basis from September 30
Bitcoin Plunges as SEC Denies Cryptocurrency-based ETF Application

Bitcoin Plunges as SEC Denies Cryptocurrency-based ETF Application

2017-03-11 00:10:00
Daniel Dubrovsky, Analyst
Share:

Talking Points:

  • The Securities and Exchange Commission rejected a Bitcoin-based exchange-traded fund application
  • Bitcoin declined as much as 24 percent against the US Dollar, this also marked a 1-month low
  • The SEC cited concerns over Bitcoin’s unregulated market as part of the rejection

Have a question about trading the markets? Join a Q&A webinar and ask it live!

The markets were delivered a shock of volatility towards the end of the trading week as the Securities and Exchange Commission (SEC) rejected a Bitcoin-based exchange-traded fund application (ETF). As the news crossed the wires, the digital currency fell as much as 24 percent against the US Dollar in the space of minutes, touching a one-month low. It quickly pulled back from its extremes to trim some of its losses, leaving a 1-hour candle that offered a 14 percent contraction.

In terms of what the group requires for ETF applications to be approved, the SEC upholds that the product in question must be consistent with rules designed to prevent fraudulent and manipulative practices to protect investors and the public interest. Having said that, the commission noted that because significant markets for Bitcoin are unregulated, the exchange wouldn’t be able to perform sufficient surveillance.

As Chief Currency Strategist John Kicklighter mentioned in previous analysis, one of the fundamental drives for Bitcoin is its value as an alternative to traditional fiat currency – a role benefited by the lack of regulation. Fiat money is defined as being a unit of account, store of value and medium of exchange. The SEC’s decision is a step away from boosting the legitimacy of the new asset which could subsequently bolster liquidity to the digital currency. Yet, despite the setback, Bitcoin remains the most liquid of the cryptocurrencies.

Moving forward, Bitcoin traders and users will weigh this development in terms of its long-term adoption and development. Inclusion in popular financial products like exchange-traded products isn’t the only path to prominence for this alternative asset. It continues to enjoy considerable appeal amongst global participants looking to circumvent capital controls. This value lead the Bitcoin to its first true surge in 2013 when Cyprus cut off fund withdrawal of locals and foreign investors offshoring capital in the country. China has become the most recent test of this back channel asset. However, authorities in the financial power house of taken considerable steps these past weeks to rein in Bitcoin exchanges.

Bitcoin Plunges as SEC Denies Cryptocurrency-based ETF Application

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES