Bitcoin ETF decision postponed by SEC while Goldman Sachs is making big plans ahead

Image source: pixabay - HoliHo

For many cryptocurrency investors, the recent news on Bitcoin is almost like a roller coaster ride. While uncertain that Bitcoin is going bullish long-term, whatever decisions made today could change the future of cryptocurrencies.

One such news is the long awaited decision for Bitcoin ETFs. Last month, the Winklevoss brothers were rejected for the 2nd time by SEC on their Bitcoin ETF proposal. News on CNBC - Arjun Kharpal announced the delay of SEC's decision on the VanEck-SolidX Bitcoin ETF.

VanEck's third attempt to establish a Bitcoin ETF would be announced only later around September 30th. Bitcoin ETFs have already caused SEC to split, as Commissioner Hester M. Pierce made her public dissent on the matter on Winklevoss's 2nd rejected attempt.

The market stability for cryptocurrencies relies on not just retail investors, but also bigger players such as institutional investors which the market is currently lacking. The delay could have costly impact in the future, given that cryptocurrency is in its infancy. Whoever strives to be the first country with the power to dominate in the coin market would have a highly positive impact on their future economy.

Image source: pixabay - zalazaksunca

The Goldman Sachs CEO might be singing one tune, while their company sings another. News has suggested that Goldman Sachs is planning to offer custody on crypto funds. This could mean that banks would hold crypto funds on behalf of the investors, providing a safety net should crypto funds get stolen on the exchange.

The deliberations are ongoing and no timeline has been set for when the firm will roll out the services, the people said, asking not to be identified because the information isn’t public.
Source: Bloomberg - Sridhar Natarajan

We really cannot blame the anonymous crowd for speaking up, since Bitcoin has gathered much interest. The interest in digital assets within Goldman Sach's clientele has been strong and eventually one of the larger banks have to offer custody.

As we speak, "at least three giant Wall Street custodians -- Bank of New York Mellon Corp., JPMorgan Chase & Co. and Northern Trust Corp. -- are working on crypto-custody services or exploring it." Source: Bloomberg - Sridhar Natarajan. CBOE has also filed for Bitcoin ETFs with SEC, highlighting the urgency of Bitcoin ETFs coming into existence.

Image source: pixabay - Alois_Wonaschuetz

Once a tool for the dark web, Bitcoin's main use is by legitimate users. Illegal activity linked to Bitcoin transactions have shrunk below 10 percent as reported by Infante, who is a DEA special agent and part of the 10-person Cyber Investigative Task Force:

"The volume has grown tremendously, the amount of transactions and the dollar value has grown tremendously over the years in criminal activity, but the ratio has decreased," she said in an interview at her office in Weston, Florida.
Source: Bloomberg - Camilla Russo

Wallet addresses and the immutable blockchain has created a solid trace of transactions and patterns, giving law enforcement an advantage to track down illegal activity. User identities are no longer "obscure" as it was once believed.

With the continued efforts by financial institutions, law enforcement, web developers and investors, cryptocurrency is bound to take off. Right now the starting conditions just needs some tweaking to be made right.

-tysler