As investor confidence turns positive throughout global markets just before the holidays, the Bitcoin price has surged back above $50,000 for the first time in two weeks.
Bitcoin is currently trading 5.22 percent higher at $51,031 with a market capitalization of $966 billion as of press time. Bitcoin has been steadily sliding sideways after establishing a new high of $69,000 in November last month, correcting more than 30%.
Money has been flowing from risky asset classes like crypto and equities to other safe-haven securities as inflation has reached new highs and the Fed has announced tighter monetary policies. While many people think of Bitcoin as a hedge against equities, it hasn’t proven to be so so far! According to Ross Mayfield, an investment strategy specialist at Baird,
“I view Bitcoin as a high-beta risk asset. When risk appetite is up, it’s up big. And when risk appetite is down, it can be down big. It’s not perfectly correlated, that’s definitely too simple of a read, but it’s certainly not a volatility hedge.”
Two Bitcoin Spot ETFs are rejected by the SEC.
Despite the US Securities and Exchange Commission (SEC) rejecting two Bitcoin spot ETFs, the price has risen today. The SEC has expressed strong opposition to the adoption of the physically-backed BTC ETF, despite its familiarity with Bitcoin Futures ETFs.
The Securities and Exchange Commission (SEC) of the United States has rejected two Bitcoin spot ETF proposals. Of course, from Valkyrie Investments and Kryptoins, citing a failure to meet the regulator’s criteria of prohibiting manipulative activities and fraud.
The holy grail of financial instruments, spot Bitcoin ETFs, remain the holy grail. Also, this is likely to bring tremendous liquidity to Bitcoin. Bloomberg Intelligence analyst Eric Balchunas refers to the current rejection as a “Scrooge-jection.” He went on to say:
“The fact that the SEC is disapproving faster than they needed to — “
“we were optimistic about futures, but we’re not confident in a 2022 approval”.