Bitcoin prices fell sharply on Friday following an SEC rejection. Regulators declined Tyler and Cameron Winklevoss’ proposal of a bitcoin ETF. The proposed ETF would allow millions of Americans to invest in the digital currency through their 401(k) and IRAs.
Prices tumbled from near $1,300 to $1,060 following the news before ending the day at $1,117.
The currency’s rebound continued through the weekend, passing the $1,200 mark on Sunday. Bitcoin prices are up 0.52% on Monday at $1,235.86.
The SEC’s decision to reject the bitcoin ETF came in a statement that read, “As described above, the Exchange has not entered into a surveillance-sharing agreement with a significant, regulated, bitcoin-related market. The Commission also does not believe, as discussed above, that the proposal supports a finding that the significant markets for bitcoin or derivatives on bitcoin are regulated markets with which the Exchange can enter into such an agreement.”
Consumer protection remains the primary concern of the regulator. Investors remain confident that other jurisdictions may allow a bitcoin ETF to exist.
Analysts suggest that investment in the crypto currency will increase over the remainder of 2017. CNBC suggests that the cryptocurrency has the potential to hit $3,000 by the end of the year. The forecast points to recent developments that allowed bitcoin prices to rally at the start of the year.
Chinese authorities increased regulations at the start of the year to reduce money laundering that plagues the industry. Global economic uncertainty and volatility in other currencies are also of note. Bitcoin has started to become an alternative source of money following demonetization in India.
The decision by the SEC will stall the growth of the currency in the United States.
An approved exchange traded fund was expected to cause a flood of investment in the currency. Japan’s recent bill passage helps strengthen the currency. The bill allows digital currencies to be used as fiat money.
Safer predictions put the currency’s value at $2,000 – $2,500 by the end of the year.