Bitcoin Is Set To Launch This Week As The Cryptocurrency Plunges 70% From Its Peak

Bitcoin Is Set To Launch This Week As The Cryptocurrency Plunges 70% From Its Peak

2022-06-23 | Selina Mathew

Bitcoin Is Set To Launch This Week As The Cryptocurrency Plunges 70% From Its Peak


The SEC said it was rejecting the ETFs because of concerns over "fraudulent or manipulative acts and practices" related to bitcoin trading.

Earlier this month, two exchange-traded notes (ETNs) debuted on the Nasdaq Stockholm in Sweden, providing investors with a new way to speculate on bitcoin's movements.

The Crypto-currency Act defines virtual currencies as digital assets used as a medium of exchange, a unit of account or a form of stored value but not recognized as legal tender.

The Securities and Exchange Commission blocked nine additional bitcoin ETFs recently, bringing the total number of rejected applications by the SEC to 14.

The ETNs are a way for investors to bet on bitcoin's movements, but they aren't an investment in bitcoin itself.

There are two ways to use them: buying or selling short (betting that bitcoin prices will fall), or buying long (wagering they will rise).

The notes were developed by XBT Provider, which is owned by U.S.-based CoinShares Holdings Ltd., according to Bloomberg News.

 They trade under the ticker XBTCO and XBCH9 on Nasdaq Stockholm, respectively.

This ETF is expected to be one of the most heavily traded on its exchange, with a daily trading volume in the hundreds of millions.

 Its launch comes as bitcoin prices have fallen more than 70 percent from their December peak.

 With a price of $9,724 at the time of writing, down from highs above $19,500 in mid-December.

The cryptocurrency has been under pressure following news that U.S. regulators are investigating potential manipulation in digital currencies and South Korea plans to impose new regulations on some exchanges

In addition to this latest ETN approval, New York-based VanEck Securities Corp recently filed for an ETF with the SEC that would track bitcoin futures contracts listed on exchanges regulated by U.S.'s Commodity Futures Trading Commission (CFTC).

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In other words, this ETF isn't going after bitcoin because it has any idea what will happen to the price.

 It's going after bitcoin because investors want a reliable way to short it and profit as the currency loses value—something that's been particularly difficult to do with an unregulated investment like cryptocurrency.

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