Crypto’s $600 Billion Crash Hits a New Low

Crypto’s $600 Billion Crash Hits a New Low
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The 2018 selloff in cryptocurrencies plumbed new depths after the U.S. SEC dented enthusiasts’ hopes for a VanEck exchange-traded fund backed by Bitcoin, according to Bloomberg.

A broad selloff in coins of all sizes reduced the market value of virtual currencies tracked by Coinmarketcap.com to about $230 billion, the lowest level since November. Digital assets have now lost about $600 billion since crypto-mania peaked in January, more than the market value of all but the four biggest companies in the S&P 500 Index.

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 support prices, but regulators and many institutional investors have remained wary amid concerns over security and market manipulation.

The SEC now has until Sept. 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 Corp. and SolidX, 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 Aug. 6, it said.