What happened with Bitcoin?

Increasing volatility and

the future of bitcoin.

For the first time ever, bitcoin was worth more than gold, as of the 3rd of
March. This comes to no surprise, as bitcoin has been growing steadily
over the last couple of months. It seemed like the like perfect investment,
with a growth of a 62.8% over the last 45 days.

This was until bitcoin crashed, shortly after they overtook the gold price.
The price was highly volatile, between 1280$ and 1170$. What caused
this?
1) Measures of the Chinese bank which regulate bitcoin trade wouldnt be
as temporary as they initially announced.
2) There was little confidence for a positive result of the US stock market
watchdog SEC with regards to the approval of the exchange-traded funds
on the bitcoin. Coindesk knows that one of the larger investors in the
bitcoinbusiness, Global Advisors Bitcoin Investment Fund, estimates that
the chances of approval of the ETF by the brothers Winklevoss (= one of
the three ETFs, is approximately 25 percent.
On the 10th of March bitcoin crashed from 1280 to 1000 dollars due to the
American SEC denying the ETF.
At least there is some good news for bitcoin, coming from Texas. They
recently set up an amendment on the Texan constitution. Article one of
the amendment states clearly that:

(...) the right of the people to own, hold, and use a mutually agreed-
upon medium of exchange, zoals cash, coin, bullion, digital currency, or
scrip When trading and contracting for goods and services Shall not Be
Infringed. No government Shall prohibit or encumber the ownership or
holding company or any form or amount of money or other currency. In
addition to a shiny weapon in the holster, the Texan citizen therefore has
the right to the free (= not imposed by the government) choice of
payment. If the amendment is adopted and approved by the voters of
course. First, the view of the SEC, then, so that after Saturday - just
maybe - for the time being come to an end the speculation surrounding
the nervous Bitcoin.

This gives the right to any Texan to use of any payment method. This is, if
the amendment will be accepted and approved by its citizens.

The future of Bitcoin ETF?

Most analysts agree that Bitcoin ETF is not a necessity, in order for Bitcoin
to keep growing. However, the SEC believes that Bitcoin markets will
eventually develop over time and the SEC is willing to approve future ETFs
if theyh comply witht he requirements of the Exchange Act.

Even though bitcoin has not been granted an ETF, SolidX Bitcoin ETF is
still under consideration of the SEC. If SolidX manages to figure out the
reason of the failure of Winklevoss twin Bitcoin ETF and use that to get an
approval, Bitcoin could see an introduction of a Bitcoin ETF soon.

The reason SEC did not approve the ETFs is revolved around unregulated
OTC markets, which is a huge compromise for Bitcoins security to push
for the approval of the ETF. Bitcoin has mainly been popular due to its
safety, security and untraceability.

In its official statement, the SEC wrote:

As discussed further below, the Commission is disapproving this

proposed rule change because it does not find the proposal to be
consistent with Section 6(b)(5) of the Exchange Act, which requires,
among other things, that the rules of a national securities exchange be
designed to prevent fraudulent and manipulative acts and practices and
to protect investors and the public interest. The Commission believes
that, in order to meet this standard, an exchange that lists and trades
shares of commodity-trust exchange-traded products (ETPs) must, in
addition to other applicable requirements, satisfy two requirements that
are dispositive in this matter.

The major part of the announcement of the SEC is focused on the tracking
and surveillance sharing agreements. SEC will only approve the ETF if the
commission had full certainty that the exchange traded funds of the ETF
can be surveilled and tracked without any obstacles.

First, the exchange must have surveillance-sharing agreements with

significant markets for trading the underlying commodity or derivatives on
that commodity. And second, those markets must be regulated, the
document read.

Bitcoins security expert Andreas Antonopoulos wrote as a response:

Jerry Brito, Bitcoin non-profit research and Coin Center executive director,
also stated:

The Winklevoss ETF proposal was rejected because the SEC found that
the significant markets for Bitcoin tend to be unregulated overseas
markets that are potentially subject to price manipulation. But this creates
a chicken and egg problem. How do we develop well-capitalized and
regulated markets in the US and Europe if financial innovators arent
allowed to bring products to market that grow domestic demand for digital
currencies like Bitcoin?

Conclusion

Bitcoin will not need an ETF to stay successful and maintain a steady
growth. However, an ETF will definitely help. While still awaiting results
from the twin, SolidX, speculations should not be made. By doing the
needed research, SolidX might be able to get an ETF. Otherwise, SEC
stated that that in the future, Bitcoin will eventually be able to get an ETF
if they meet specific requirements.