The US government shutdown has delivered an unexpected blow to Bitcoin’s price. The withdrawal of VanEck Bitcoin ETF application had a direct connection with this shutdown, company’s CEO recently told CNBC during an interview.
It’s no secret that Bitcoin’s ongoing malaise is largely in part due to the expectations that people have had from it. After its dramatic 20x rise in last year There was a lot of hype around Bitcoin, and just like any other hype people were expecting things that were very different from the ground reality. Now when it has become clear that large institutional investments are not coming anytime soon, regulators are not going to be very friendly and network upgrades going to take longer than expected, the price of all major cryptocurrencies, including Bitcoin, has started consolidating. However, what’s completely surprising is the fact that ongoing shutdown of US government has added to the woes of crypto community in another completely unexpected manner!
That’s right. The infamous US government shutdown is not having a toll on US economy alone – it has also left its impact on Bitcoin in a surprising manner. If you keep an eye on our updates then you may know already that recently VanEck Bitcoin ETF application was withdrawn from SEC. Now it turns out that the reason behind withdrawal was the absence of SEC staff due to the shutdown. The deadline of US Federal Government to decide the fate of this ETF application was fast approaching, but SEC staff was not present to review the application diligently. The result would not have been very different from last time – a rejection! Therefore, VanEck decided to withdraw the application so they can apply at a later date.
A Bitcoin ETF has been one of the most awaited things in cryptocurrency market. It’s seen as a new channel to bring fresh investment into cryptocurrency sector. Jan van Eck, the CEO of VanEck Mutual Funds, recently disclosed the reason of withdrawal to CNBC in an interview. He said:
“The SEC is affected by the shutdown… we were engaged in discussions with the SEC about the bitcoin-related issues, custody, market manipulation, prices, and that had to stop. And so, instead of trying to slip through or something, we just had the application pulled and we will re-file and re-engage in the discussions when the SEC gets going again.”
When Satoshi Nakamoto had outlined the decentralized cryptocurrency Bitcoin in his white paper, might never have imagined that centralized institutions like government’s will be able to influence the price of Bitcoin like this. However, this is what’s going on right now.
Nevertheless, with Bitcoin ETFs out of sight now eyes of crypto community are set on the launch of Bakkt platform and its Bitcoin futures. Even these things have been delayed, however, not once but multiple times. At the moment we’re looking at a launch by the end of this quarter. Let’s see whether that happens or not!