Trader's dream of ETF shattered on reality of SEC

This sacred word for the ears of fans of crypto - ETF or Exchange Traded Fund was a hot topic for the most of this month, and rumors about the imminent arrival of the  “ETF” worked like a steroid cocktail for the price of the digital gold.

But something unexpected happened: “Second arrival” of the financial messiah is being delayed.

The United States Securities and Exchange Commission postponed it’s decision about Direxion application that requested 5 different ETFs. And later on, outright reject the application from the Gemini crypto exchange that belongs to Winklevoss twins, that many in the community considered to be “in the bag”. Official reasons for this - main American regulator needs a lil bit more time to think about it and how it can be done.

If set aside recent sociological researches, claiming that cryptocurrencies prices are often affected by the herd mentality and hype, ETF was a  main driver of bitcoin growth. Other than that, there was no real ground for the price hike, aside from “wishful thinking”. Which is understandable, because after the ETF bitcoin price will surge and a lot of people will easily double their money. In theory.

But there are other reasons, aside from ETF itself. It’s “Big money”, institutional investors that came with the winds brought  by the notion of upcoming ETF, number of companies that recently looked on crypto only because of the technology behind it or were utterly uninterested in it changed their opinion.

The third aspect is often overlooked because it’s far from being as obvious, as the other two, It’s the nature of crypto itself.  It’s not an asset or traditional currency, it’s more an individual valuable unit of technology. Because of this fact, a lot of people doubt that the SEC will ever come up with a consensus and before that the industry is not going to mature.

The situation in Russia is eerily similar, when MOEX, the largest exchange group in Russia does not see anything bad in crypto trading. But alas - before regulator will set down legal boundaries, members of the Moscow Exchange can look at the crypto only from over the fence.

Just like we can only wait for the September, 21 when SEC will review Direxion ETF application again, because before that -crypto industry is going to keep going around on a tricycle, even if its knees are hitting the handlebars.