The SEC Said Something Amazing For Bitcoin!!!
We’re going to be going over four hot pieces of news released today and over the weekend. First up, according to CoinDesk, it looks like Bitcoin is currently 2019’s best-performing asset, even after the recent price downturn. Next up, it looks like there’s some good news for Bakkt. Despite a slow start, Galaxy Digital and XBTO have just made the first block trade of Bakkt Bitcoin Futures. In the third segment for today, some more good news for Bitcoin looks like the SEC staff have just acknowledged that Bitcoin is not a security. And finally, looks like Coinbase Pro’s Fees Surge 233% for Lower Volume Users, while whale fees drop.
The Market Today
Today, the crypto market is mainly in red. Bitcoin is once again dipping to $7,815, with a 3.32% decrease. Ethereum is also decreasing by 3.23%. However, we can see a positive movement from XRP, which is increasing by 0.75%.
Bitcoin is 2019’s best-performing digital asset
According to a report on Coindesk, despite the recent price downturn, Bitcoin is still 2019’s best-performing asset. Here are some key takeaways Coindesk mentioned in their article. First up, Bitcoin prices have more than doubled this year, outdone the 31% return on investment of the best-performing U.S. tech stocks. I’m sure you guys still remember Bitcoin’s 2017 rally, when it rose more than 20 times, peaking at an all-time high of $20,089. Although BTC is currently dropping, at the current price, it is still ten times higher than what it was at the beginning of 2017. According to an executive from KR1, a crypto investment company said:
“Bitcoin’s been around long enough now where people are more familiar with it. Yep, it swings wildly, but they might know other people who have bitcoin, and say to themselves, ‘Hey, they’ve done pretty well this year. It’s always down to fear of missing out.”
But that’s not all. One of the long-term arguments for bitcoin is that, unlike stocks and bonds whose prices are highly sensitive to the decision of central banks and governments, cryptocurrencies are independent of sovereign authorities. Bitcoin is subject to fixed policies that are hard-coded into the underlying network, and therefore difficult to change. For those who are unaware, the Bitcoin supply is limited at 21 million, so it’s not prone to inflation like the US dollar, Euro and Yen.
Galaxy Digital and XBTO conducted Bakkt’s first block trade
According to an article on Coindesk, cryptocurrency investment fund Galaxy Digital and over-the-counter (OTC) trading firm XBTO have conducted the very first block trade of Bakkt’s bitcoin futures contract. For those who don’t know, a block trade, it is a large transaction negotiated off the open market. It takes place off the open market to avoid moving the price too much. The exchange, however, didn’t reveal the actual amount of the transaction. Following the block trade execution, XBTO representative confirmed:
“This week, we executed the first block trade. We’re pleased to report that the launch was successful and can accommodate large trades.”
Galaxy Digital also commented:
“As the digital asset class continues to mature, we view the launch of Bakkt as a foundational piece of market infrastructure.”
Although Bakkt witnessed very low trading volume in its first week, the inauspicious debut has, however, not affected its future trajectory in the cryptocurrency sector. I’m sure that the trading volume will pick up soon.
SEC: Bitcoin isn’t a security
A new article on the Block crypto reports that Bitcoin is not a security, as confirmed by the SEC staff. In the letter written to Jacob E. Comer, the Head of Regulatory and Compliance for Cipher Technologies Management LP, Brent J. Fields, the SEC’s secretary said:
“Commission staff carefully reviewed your June 14, 2019 letter and considered your input from our September 27, 2019, in-person meeting, and we disagree with your conclusion that bitcoin is a security.”
Just to give you a bit of context, this letter responded to 40 Act registration of Cipher, who filed a registration statement with the SEC. In the form, Cipher took the position that Bitcoin is a security. The SEC, however, responded,
“Among other things, we do not believe that current purchasers of bitcoin are relying on the essential managerial and entrepreneurial efforts of others to produce a profit.”
Now, I should clarify with you that, this is not a regulation or legal document. However, it is significant and important public confirmation that the SEC does not believe that Bitcoin is a security.
Coinbase Pro’s fees surge up to 233%
According to Cointelegraph, the US-based digital asset exchange Coinbase Pro announced that it will be increasing its trading fees again on Coinbase Pro. Now, this is the second increase this year, following the one we saw in March. According to their announcement, the new rates will be applied from October 7th. The lowest tier, which is less than $10K, will surge as high as 233% from 0.15% to 0.50%, for the maker and from 0.25% to 0.5% for the taker. If you haven’t traded on Coinbase Pro, you may be wondering, what is maker and taker? Now, the maker-taker fee model is adopted by Coinbase to calculate its trading fees, where maker orders mean those that provide liquidity and taker orders indicate those who take liquidity. This system will encourage large transactions by lowering the fee but at the same time, it will be charging a significant amount for minor deals. While Coinbase believed that the new design will “increase the depth and liquidity of […] markets,” the crypto community doesn’t seem to be happy with it. Reddit user heresjoNNy130 mentioned,
“Meanwhile stock brokerages are all going fee-free. I emailed support blasting them. If they don’t change, I’m going to Kraken.”
And that’s the news segment for today guys.
First, do you agree with the idea that Bitcoin is 2019’s best performer asset?
Are you happy to see Bakkt coming back from its disappointing launch?
Are you glad to hear that Bitcoin is not a security?
And are you a trader on Coinbase Pro that will be negatively affected by the changing rates?
Please leave a comment right below to let me know what you guys are thinking.
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Disclaimer: Cryptopig content is written by a team of blockchain passionate people. We are not registered as investment advisors. Don’t take the information in this post as investment advice and make sure you do your own research before investing. Cryptocurrencies are a very risky investment, never invest more money than you can afford to lose.