The SEC announced on Tuesday that it would be postponing a decision on the VanEck/SolidX Bitcoin ETF until September 30.
The price of bitcoin tumbled 13% this week following the news.
As I’ve mentioned in previous updates, the SEC had already denied a separate request for the Winklevoss Bitcoin ETF on the basis of regulatory concerns.
But the VanEck/SolidX Bitcoin ETF attempted to resolve those issues by setting a price that would be prohibitively expensive for average investors ($200,000 per share). Market participants were wagering on the ETF being passed, given its emphasis on institutional investors.
However, the SEC’s latest decision is not objectively bad news.
First, the SEC didn’t outright deny the application, as it did with the Winklevoss Bitcoin Trust application last month.
Secondly, the SEC postponing a final decision should not come as a surprise to anyone who has been keeping an eye on the agency. For example, the SEC only decided on the outcome of the Winklevoss Bitcoin Trust last month after several years of deliberations.
In fact, it wouldn’t surprise me if the government continued to postpone the decision, and ultimately didn’t make a final ruling until early 2019.
Meanwhile, with the market obsessively focused on a bitcoin ETF, other positive catalysts have gone largely unrecognized.
Earlier this week, Bloomberg published a report that Goldman Sachs is exploring opportunities to provide cryptocurrency custody services for institutional investors. 
Separately, and perhaps more importantly, last week, the Intercontinental Exchange (ICE) — the parent company of the New York Stock Exchange — announced that it’s formed a new company. The new organization, Bakkt, has the stated purpose of enabling “consumers and institutions to buy, sell, store and spend digital assets.”
The announcement, made in collaboration with Microsoft and Starbucks, indicated the exchange giant’s intention to work with best-in-class partners to bring digital currency to consumer transactions.
As I’ve always said, the biggest opportunity for digital currency is as a replacement for the imperfect currencies we use today.
The New York Stock Exchange, as one of the oldest and most storied financial institutions in the U.S., might be the best-equipped institution to take on the responsibility.
Takeaway:
Cryptocurrencies fell earlier this week as regulators postponed a key decision regarding the VanEck/SolidX Bitcoin ETF.
However, just last week, ICE announced plans to launch a business that could have an even bigger impact on the adoption of digital assets by consumers and institutions.
The latest news from ICE indicates the continued push toward the future of digital assets, despite regulator skepticism.
I continue to remain bullish on the future of digital currencies such as bitcoin , ethereum and adscash encourage readers to buy dips.
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