By Olga Kharif
(Bloomberg) -- Crypto lovers weren’t the one ones watching Bitcoin’s meteoric ascent final month.
The chance of a Bitcoin exchange-traded fund gaining approval from the U.S. regulator has declined due to the cryptocurrency’s wild value swings in June, Jeff Dorman, chief funding officer at Arca, wrote in a July 1 analysis be aware.
The Securities and Trade Fee has already shot down a number of ETF proposals, together with one from the Winklevoss twins, citing issues over market manipulation in cryptocurrency markets. Bitcoin’s value rose practically 50% final month via June 26, solely to slip about 20%. These gyrations had been fueled by unregulated exchanges letting customers borrow 100 instances greater than they put down, Dorman wrote, describing it as “unnatural volatility brought on by extreme leverage and outsized risk-taking.”
“It’s nearly a slam dunk now that an ETF received’t be accepted any time quickly, as an 81% 14-day levered rally, most of which occurred after U.S. buying and selling hours, just isn't precisely the method for profitable SEC approval,” he wrote.
To contact the reporter on this story:
Olga Kharif in Portland at [email protected]
To contact the editors chargeable for this story:
Nick Turner at [email protected];
Jeremy Herron at [email protected]
Rachel Evans, Rita Nazareth
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