People keeping an eye on the bitcoin ETF situation may have noticed the bitcoin price took a serious dump these past few hours. After yesterday’s PBoC news, a lot of people grew concerned about the future of bitcoin in China. However, it appears the Global Advisors Bitcoin Investment Fund is taking a step back as well, as they are limiting exposure to cryptocurrency.
Global Advisors Bitcoin Investment Fund Is On The Fence
It has to be said, the upcoming SEC decisionn will shake up the bitcoin landscape, regardless of the outcome. Bitcoin’s price has edged up over the past few weeks, yet it seems a retrace is still a more likely outcome at this point. With the bitcoin price declining across all global exchanges, it is evident some investors are getting very antsy about what the future may hold.
Major hedge funds are also keeping a close eye on the situation, which is to be expected. Unfortunately, it would appear the sentiment is not all that positive either. Global Advisors Bitcoin Investment Fund, based out of Jersey, is taking a step back from the bitcoin scene for now. While their business revolves around buying and selling bitcoin on behalf of investors, they feel the SEC decision will cause problems for their business model.
To be more specific, GABI thinks that the ETF process will ultimately be rejected by the SEC. If that is the case, the company is concerned about there being no catalyst to cause any major bitcoin price upswings. That is a rather strong sentiment, even though the bitcoin price can always appreciate regardless of the SEC decision.Then again, this particular investment fund feels the time has come to limit their exposure to bitcoin as a whole.
According to a GABI spokesperson, the chance of seeing the SEC vote in favor of the rule change is 25% or less. That is not surprising by any means, as a similar sentiment is echoed by virtually all major economists and investors. Then again, no one knows for sure what will happen until we hear from the SEC. However, if the SEC remains quiet by the time the deadline expires, the rule change proposal will be approved automatically.
This decision causes quite a bit of controversy, as was to be expected. Limiting exposure to bitcoin at this crucial stage means GABI will miss out on whatever happens to bitcoin in the coming weeks. Underperforming as a major hedge fund is not acceptable, yet the company is willing to chalk up the losses if needed. It is equally interesting to note the company still believes bitcoin’s price will go higher in the coming years, regardless of the ETF process.
Header image courtesy of Shutterstock
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
