[Bitcoin Now] US SEC Rejects Bitcoin Spot ETF Listing but... Rises to 62 Million Won Range

Virtual Currency Market Riding the Santa Rally

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The U.S. Securities and Exchange Commission (SEC) has rejected the listing of a representative cryptocurrency Bitcoin spot exchange-traded fund (ETF). Nevertheless, Bitcoin rose to the 62 million KRW range ahead of Christmas.

According to the domestic cryptocurrency exchange Upbit, as of 2:58 PM on the 24th, Bitcoin recorded 62.02 million KRW, up 0.88% from the previous day. Although Bitcoin fell below the 60 million KRW mark the day before, it gained momentum and rose to the 62 million KRW range. It rose to 62.74 million KRW at 11:04 AM on the same day.

The SEC blocked the launch of a Bitcoin spot ETF. According to major foreign media on the 23rd (local time), the SEC rejected the listing applications of Bitcoin spot ETFs from U.S. asset management firms Valkyrie and CryptoIn. The SEC cited insufficient measures to prevent fraud and manipulation and to protect investors and the public interest as reasons for the rejection.

In October, Bitcoin ETFs appeared for the first time in the U.S. stock market. The asset management firm ProShares’ Bitcoin futures ETF, the “ProShares Bitcoin Strategy ETF” (BITO), is a product that tracks Bitcoin futures traded on the Chicago Mercantile Exchange (CME). However, since it tracks Bitcoin futures, it was widely expected that it would not have a direct impact on the spot price.

Since then, several asset management firms have attempted to launch Bitcoin spot ETFs but have been repeatedly rejected. According to U.S. economic media CNBC on the 12th of last month, the SEC rejected the launch of VanEck’s Bitcoin spot ETF. This was also due to insufficient investor protection. Dave Nadig, Chief Investment Officer (CIO) of ETF analysis firm ETF Trends, explained, “The SEC will not approve the launch of Bitcoin spot ETFs for the next three years,” adding, “Investor protection is the reason.”

Meanwhile, the Bitcoin rally is being analyzed as having ridden the Santa rally. The Santa rally refers to the rise in prices of risky assets as investor sentiment revives around Christmas. On the 23rd, cryptocurrency specialized media CoinDesk reported, “Although trading volume was low two days before Christmas, Bitcoin surpassed the $50,000 mark (approximately 59.34 million KRW) for the first time since the 13th of this month,” adding, “Other altcoins also followed Bitcoin’s bullish movement.”