On Friday, the price of Bitcoin slipped to $7700 after the SEC rejected an ETF proposal presented by the famous Winklevoss twins. The two twins are the founders of the successful cryptocurrencies exchange and custodian, Gemini which provides services to individuals and institutions.
Today, the BTC/USD pair jumped to $8205 which is the highest level since Friday. It is a few pips below the two-month high. The current jump is attributed to the optimism that the SEC will accept an ETF proposal submitted by VanEck ETF. This is because the ETF is designed for the institutional investors and not the average traders. Their contract size will be 25 bitcoins, which is equivalent to more than $200,000.
This is a good thing for hedge fund and institutional investors who want to diversify their portfolios. At their level, they don’t want to deal with things like cold storage and private keys. In addition, they need the assurance of a counterparty that is regulated by the SEC. A recent study found that in the United States, only 2% of the investors own Bitcoins while 26% of them are intrigued about the industry. A credible ETF could increase this percentage of ownership.
Other significant recent news was that Google was following the footsteps of Apple in banning apps that mine cryptocurrencies. This comes a few months after Google banned cryptocurrency related ads on its platform.
BTC/USD pair has held above the important $8,000 level as traders wait for a decision from the SEC. on the 4-hour chart below, this price is between the 50% and 61.8% Fibonacci Retracement levels and above the 50 and 100-day Exponential Moving Averages (EMA). More upside movements could come if the pair crosses the 61.8% Fibonacci level.
