Bitcoin Breaks $4,000; SEC’s Review of Bitcoin ETF Meets Criticism

Investing.com – Major cryptocurrencies made some gains on Thursday morning in Asia after losing ground for two days.

Meanwhile, a much-discussed Bitcoin exchange-traded fund (ETF) that is under review by U.S. Securities and Exchange Commission (SEC) received some negative feedback.

Bitcoin broke past the $4,000 level to reach a one-week high. The cryptocurrency moved 1.21% higher to $4,045 by 11:50 PM ET (03:50 AM GMT). Other coins also traded higher. Ethereum gained 1.10% to $139.08, XRP was up 1.19% to $0.31678 and Litecoin added 1.95% to $60.113.

A lot of attention went to reports that the SEC had received mostly negative comments on a proposed rule change for the Bitcoin ETF by investment firm VanEck and financial services company SolidX. Six out of the seven comments the SEC received strongly urged the regulator not to approve the proposal.

One comment focused on Bitcoin’s lack of value as a financial product, its volatility and market manipulation “by the very few”. Another urged the SEC to take a 'watch and wait approach'.

Earlier, SEC chairman Jay Clayton said there “may be a case where a Bitcoin ETF could satisfy our rules.” It is not immediately known what the SEC’s stance on the issue is after receiving the comments.

Elsewhere, Switzerland approved a motion to adapt the current provisions on procedural instruments of judicial and administrative authorities to make them applicable to cryptocurrencies.

The move is believed to further protect crypto users from illicit activities such as extortion and money laundering. The legislation will look into how to stifle crypto-associated risks. It will also determine if entities operating crypto trading platforms should be equated with financial intermediaries and be subject to financial market supervision.