How Crypto Reacted to This Week's SEC Bitcoin ETF Delay

The news broke on August 7 that the U.S. Securities and Exchange Commission is kicking the can on its decision to approve or disapprove a proposed rule change that would let the Cboe BZX Exchange list a bitcoin exchange-traded fund.

As CoinDesk reported previously, if approved, it would allow for the first-ever listing of a bitcoin ETF in the U.S., done in partnership between investment firm VanEck and blockchain startup SolidX. The two companies submitted their proposal back in June.

More broadly, the listing would be seen in some quarters as a sign of maturation for the cryptocurrency market and likely open the door for investors to gain exposure - albeit indirectly - to the nascent asset class.

The delayed decision was, as posts on social media suggest, largely expected by members of the crypto community.

While the collective social media response wasn't far from a yawn, the market itself reacted poorly.

According to CoinDesk's market analysis report, the total value of all cryptocurrencies went down to $227.8 billion on Wednesday, the lowest level since November 2017.

The market move led to speculation that the market hadn't priced in - that is to say, accounted for the possibility of - an SEC punt.

Some argued that the SEC's deliberative process around the bitcoin ETF signals that they are taking the issue seriously.

Ultimately, as has been the case for several years now, the cryptocurrency community will have to wait to find out whether the U.S. will see the listing of a bitcoin ETF. Cryptocurrency ETF photo illustration via Shutterstock.

CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.