Bitcoin Stays Above $48k SEC’s Latest Spot Bitcoin ETF Rejection

The United States Securities and Exchange Commission (SEC) is not a fan of spot Bitcoin exchange-traded funds (ETFs). The regulatory agency has shown that it prefers Bitcoin futures ETFs over the spot ETFs.

US SEC Rejects Kryptoin’s Spot Bitcoin ETF Proposal

The United States SEC rejected the spot Bitcoin ETF proposal submitted by investment firm Kryptoin. The regulatory agency made this known in a letter issued to the investment firm yesterday.

A spot Bitcoin ETF is an investment vehicle designed to track the performance of the leading cryptocurrency. It allows investors to diversify their investments, gaining exposure to Bitcoin without holding the underlying asset.

The SEC chair Gary Gensler has made it known several times that the regulatory agency doesn’t fancy approving a spot Bitcoin ETF at the moment. He pointed out that the SEC still has certain concerns regarding the cryptocurrency market, including price manipulation.

Instead, the SEC has approved a few Bitcoin futures ETFs. The Bitcoin futures ETFs grant investors access to Bitcoin futures instead of the real spot price of the leading cryptocurrency. The SEC believes the Bitcoin futures ETFs pose less threat to the investors compared to the spot ETFs. So far, there are three Bitcoin futures ETFs available to US investors.

This latest development comes two weeks after the SEC rejected VanEck’s spot Bitcoin ETF proposal. The SEC still has a few spot Bitcoin ETF proposals it will approve and accept or reject in the coming months.

Bitcoin Remains Above $48k

The price of the leading cryptocurrency has remained above the $48k level despite the SEC’s recent rejection of a spot Bitcoin ETF. Bitcoin’s price has struggled below the $50k level in recent weeks, but the SEC’s rejection didn’t see the price dip lower.

Bitcoin is trading below its 50-day moving average of $55,167 at the moment. The MACD line remains below the neutral zone, while the 14-day RSI indicates that Bitcoin is still underperforming.

However, BTC’s price could slowly recover past the $50k level in the coming days as the broader market starts to rally again.