Bitcoin Slightly Drops to 77 Million Won Range... US SEC Rejects Approval of Bitcoin Spot ETF

The Likelihood of SEC Approving Bitcoin Spot ETF Appears Low in the Future

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin slightly dropped to the 77 million KRW range. This is interpreted as being adversely affected by the U.S. Securities and Exchange Commission's (SEC) rejection of the approval for a Bitcoin spot Exchange-Traded Fund (ETF).

According to the domestic cryptocurrency exchange Upbit, as of 8:13 PM on the 13th, Bitcoin recorded 77.53 million KRW, down 0.80% compared to the previous day. It reached an all-time high of 82.7 million KRW on the 9th but has since shown signs of stagnation. However, the decline did not exceed 1%, so it did not indicate a crash.

The SEC's decision had a somewhat negative impact. According to U.S. economic media CNBC on the 12th (local time), the SEC rejected the approval application for VanEck's Bitcoin spot ETF. VanEck's Bitcoin spot ETF was designed to track the spot price of Bitcoin but was not approved due to insufficient investor protection.

While the Bitcoin futures ETF has been successfully traded on the New York Stock Exchange (NYSE) since the 19th, the Bitcoin spot ETF has faced difficulties in gaining approval. This is also due to concerns that investor protection is not adequately ensured. Gary Gensler, the SEC chairman known to be crypto-friendly, initially expected a Bitcoin ETF to be launched soon after his appointment, but it has been delayed amid a tough stance. In May, the SEC evaluated Bitcoin-related financial products by stating, "Bitcoin derivatives are highly speculative products and highly volatile assets."

Experts analyze that the launch of a Bitcoin spot ETF will continue to be difficult. Dave Nadig, Chief Investment Officer (CIO) of ETF analysis firm ETF Trends, predicted, "The SEC will not approve a Bitcoin spot ETF for the next three years citing investor protection." On the 10th, Eric Balchunas, an ETF specialist researcher at U.S. economic media Bloomberg, also assessed that the likelihood of Bitcoin spot ETF approval in the near future is low.

This content was produced with the assistance of AI translation services.