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Ethereum (ETH) Founder, Vitalik Buterin, Says ETF Issues Overhyped

Ethereum Founder, Vitalik Buterin has stated that there has been unnecessary emphasis on Bitcoin and Ethereum ETFs, saying although the ETFs may help pump price, campaign for mass adoption should be given much emphasis because it has long-lasting effect on cryptocurrency.

Vitalik who’s of the opinion that stores need to start accepting cryptocurrency sees hope in the perspective than in the ETFs which is causing unnecessary havoc in the cryptocurrency space.

“I think there’s too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores. The former is better for pumping price, but the latter is much better for actual adoption.”

SEC Disapproval Of Winklevoss Brothers’ Application

On the 27th of July, cryptocurrency market witnessed a drastic downturn which must likely be a reaction to the United States Securities and Exchange Commission’ (SEC) decision to turn down Winklevoss brothers’ application for a Bitcoin exchange-traded fund (ETF).

Although, crypto market recovered, the news held the market for hours, making people think the end of crypto was signaled.

There is A big Difference

It is worthy to note that, according to Coindesk, the bitcoin ETF proposed by the Winklevoss brothers is not the same with the bitcoin ETF by investment firm VanEck and financial service company SolidX, which many people are discussing in the cryptocurrency space.

VanEck and SolidX made known that they applied to the SEC to get approval to kickstart what could be seen as the first bitcoin-based ETF. Responding to this application, SEC demanded comments on the request, interestingly, over 100 comments have been received, and SEC may respond to it any moment.

The Winklevoss bitcoin ETF was according to SEC rejected because the application is not “consistent with the requirements of the Exchange Act Section 6(b)(5), in particular the requirement that its rules be designed to prevent fraudulent and manipulative acts and practices.”

Crypto Community Is Calm.

While SEC’s decision has caused uproar in the crypto community, some respected investors keep on calming those who may be scared, saying the decision by SEC is nothing but a fume that will soon go into obscurity.

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UPDATE: Bitcoin Bulls Push BTC Price Back Above $8200

Bitcoin (BTC)–Investors in cryptocurrency, particularly the original coin BTC, have had an interesting week. While the currency managed to grow nearly 35% over the past two weeks, signaling what appeared to be the end of 2018’s prolonged bear cycle, the run was put to an abrupt halt following news of the Winklevoss twins’ bid for a Bitcoin ETF being denied by the SEC.

Bitcoin prices had hovered around $8300 for most of the week, before taking a plunge back into the $7900 range on Thursday when news broke that the Securities and Exchange Commission (SEC) had denied high profile crypto figures Cameron and Tyler Winklevoss the creation of a Bitcoin Exchange Traded Fund. The Winklevoss twins, who also founded the cryptocurrency exchange Gemini, had made a second attempt with the SEC on approval of a BTC-based ETF, which would mark the first ever of its kind. While much of the market and industry news has been in a stir over the looming–as some would put it “almost guaranteed”–creation of Bitcoin ETFs, the news came as a harsh ruling by the SEC on the potential for other funds.

However, while Bitcoin prices seemed to be rebuffed by the sudden news out of the U.S. regulatory agency, bullish investors were able to renew the price run on Friday morning, bringing BTC back into the $8300 range.

The denial of the Winklevoss ETF does represent a momentary setback for cryptocurrency. However, the SEC had previously announced a move to delay the decision on five other Bitcoin ETFs until September, giving the appearance that the agency is still collecting information on Bitcoin and evolving its position towards cryptocurrency. Given the overwhelming number of institutional figures, hedge fund leaders and other financial entities clamoring over the need for a regulated Bitcoin ETF, it seems only a matter of time until the SEC allows one to go through. As Arthur Hayes, co-founder of cryptocurrency exchange BitMex, told CNBC in early July, the presence of regulated funds in addition to greater government oversight in the investment process could lead to a significant price run for BTC.

While every investor and crypto-enthusiast has been espousing “institutional money” that has yet to throw its weight behind cryptocurrency, Hayes points out that most big-money and Wall Street players are waiting for greater clarity from government authorities before taking the plunge. Given the erratic nature of most exchanges, from hacks to the mounting catalog of consumer complaints, it’s almost no surprise that an ETF would provide a more appealing route for investing in Bitcoin. The bullish return for investors this morning would indicate that sentiments are still strong on the possibility of a BTC ETF creation, despite the setback received by the Winklevoss twins, as opposed to yesterday’s headlines concerning the status of a new fund formation.

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