Loading...

Bitcoin tumbles below $6 500 on delayed decision on ETF

Aug 08 2018 12:03
Eric Lam, Bloomberg
 South Africans who own cryptocurrencies such as B

South Africans who own cryptocurrencies such as Bitcoin need to declare gains or losses on their annual tax returns, according to SARS.

Related Articles

SEC again rejects Winkelvoss twins Bitcoin fund

Scene vs. herd: How to stop group mentality wrecking your finances

Bitcoin rises as biggest asset manager studies crypto technology

Extreme Bitcoin mining aids unexpected revolution in Iceland

 

The 2018 selloff in cryptocurrencies plumbed new depths on Wednesday after the US Securities and Exchange Commission dented enthusiasts’ hopes for an exchange-traded fund backed by Bitcoin.

A broad selloff in coins of all sizes reduced the market value of virtual currencies tracked by Coinmarketcap.com to $230bn, the lowest level since November. Digital assets have now lost about $606bn since crypto-mania peaked in January, equivalent to erasing the entire market value of Visa twice over. (Shares of the payments processor are trading near a record high.)

The SEC postponed its decision on whether to approve the Bitcoin ETF, dealing a blow to bulls who had bet a green light from the regulator would help sustain last month’s tenuous rally. Optimists are counting on the wider adoption of cryptocurrencies to keep prices supported, but regulators and many institutional investors have remained wary amid concerns over security and market manipulation.

Bitcoin retreated as much as 7% to $6 393.70 at 10:16 in London, extending its 2018 drop to about 55%, according to Bloomberg composite pricing. Ripple slumped 10% while Ether and Litecoin sank at least 3.9%. All but two of the 100 biggest virtual currencies tracked by Coinmarketcap.com recorded declines over the past 24 hours.

The SEC now has until September 30 to “approve or disapprove, or institute proceedings to determine whether to disapprove” a proposed rule change from Cboe Global Markets that would allow the listing of an ETF from VanEck Associates and SolidX Partners, the regulator said in a statement. An initial deadline was due to expire next week.

The regulator denied an exchange’s request to list a similar fund run by Tyler and Cameron Winklevoss late last month. Some had argued that VanEck’s proposal was more likely to gain approval thanks in part to plans for a high minimum share price that would discourage retail investors. The SEC received more than 1 300 comments on the proposed rule change as of August 6, it said.

* SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

cryptocurrencies  |  markets  |  bitcoin
NEXT ON FIN24X

 
 
 
 

Company Snapshot

#SAVINGSMONTH

Five of SA's top financial brains, including SARB governor Lesetja Kganyago share their best savings habits.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

I am not in a position to save because:

Previous results · Suggest a vote

Loading...