Although the past week was rather quiet for the cryptocurrency industry, the price action seen throughout the past few days seems to tell a different story, with Bitcoin trading within a hefty $1,400 range.
SEC Shoots Down VanEck ETF Proposal, Issues 45 Day Delay
On Tuesday afternoon, the SEC released a document revealing that it would be delaying its verdict of the VanEck and SolidX Bitcoin ETF by 45 days. In a two-page document, the American regulatory body highlighted the fact that it was exercising its right to delay such a decision, from the original date of August 16th to September 30th. Despite the fact that the SEC didn’t outright deny the proposal, some wary investors saw this of a premature sign of what was to come when the final verdict rolls about.
Jake Chervinsky, an American lawyer active in the cryptosphere, released an insightful tweet regarding his opinions on the ETF and its position with the SEC. Chervinsky, who keeps an ear to the ground in this industry, noted that he expects for the SEC to issue another extension until December 29th. In a tweet in the same thread, the lawyer predicted that if the regulatory body “instituted proceedings,” that a disapproval of the proposal would be more than likely.
Expected result, earlier than expected execution.
New deadline: Sunday, September 30, exactly 45 days from the prior deadline of August 16. I had predicted October 1, thinking the SEC would carry the deadline over to the next Monday.
I expect another extension to December 29. https://t.co/dzHq9W6xU4
-mdash; Jake Chervinsky (@jchervinsky) August 7, 2018
As a result of rampant bearish speculation, the market saw a quick sell-off, with the price of Bitcoin quickly dropping through the key support at $6,800. Altcoins followed closely behind, posting similar losses in terms of percentage. Nonetheless, CNBC crypto analyst Brian Kelly noted that the market reaction to this verdict was irrational, stating:
“We’ve had this big runup, we’ve had a little bit of a sell-off today. If you are selling today after this decision, its the wrong way to do crypto investing.”
While some investors take Kelly’s statements with a pinch of salt, this statement alludes to the analyst’s longer-term hope for this nascent market.
Goldman Sachs Could Launch Crypto Custody In The Near Future
Cryptocurrency custody solutions are seen by many as the next step for institutional adoption, with such services easing legacy market firms into this (relatively) foreign industry. As Bloomberg reports, Goldman Sachs, which is unarguably one of the most respected firms on Wall Street, may make a foray into the custody sub-industry. This unexpected news only comes a few months after the New York-based investment giant began the trading of Bitcoin futures on behalf of its clients.
The news of this surprising news comes courtesy of Goldman insiders, who added that there isn’t a definitive timeline for the potential development of such a service. While custody doesn’t sound like much independently, some users hypothesized that the successful launch of custody may entice the financial services firm to launch other crypto-focused ventures in the near future.
In response to a Bloomberg query, a Goldman Sachs spokesperson neither confirmed nor denied the existence of such a plan, stating:
“In response to client interest in various digital products we are exploring how best to serve them in this space. At this point we have not reached a conclusion on the scope of our digital asset offering.”
As covered in the previous Crypto Week In Review, Goldman is not the only traditional markets firm to show interest in custody, as Chicago-based Northern Trust expressed a similar interest for custody while speaking with Bloomberg.
Binance’s CEO Reveals Pre-Alpha Version Of Binance’s Decentralized Exchange
In mid-March, Binance, the world’s foremost cryptocurrency platform, announced the formulation of the Binance Chain project. In the announcement, the platform highlighted its move towards the development of a decentralized exchange. But in the months following Binance Chain launch, the firm went quiet, going multiple months without a substantive update. However, in a recent tweet, Binance CEO Changpeng Zhao provided his followers with a video of the “rough, pre-alpha” version of the Binance Decentralized Exchange (DEX).
A first (rough, pre-alpha) demo of the Binance Decentralized Exchange (DEX), showing issuing, listing and trading of tokens. All cli based, no GUI yet. A small step for #BinanceChain, a big step for #binance. https://t.co/2aXkR0gclP
-mdash; CZ (not giving crypto away) (@cz_binance) August 9, 2018
As this is nothing but a “pre-alpha” release, Zhao told his viewers not “to expect too much,” highlighting the fact that no graphical user interface had been created as of yet.
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