The cryptocurrency market is full of volatility. Most of the cryptocurrencies including Bitcoin, Ethereum, Ripple and Litecoin are observing a plunge. Talking about Bitcoin along, the digital currency has plunged by around $1,000 on Wednesday. Bitcoin was trading $10,082.23 down nearly 2 percent today on Coindesk at the time of reporting. The highest it touched today was $10,101.28. The cryptocurrency assets are mainly under pressure after the Securities and Exchange Commission (SEC) issued a statement on its regulation. SEC announced that it will require cryptocurrency exchanges to register. The platforms which act as exchanges and offer digital assets for trading must register with the SEC as a national securities exchanges, SEC had said in a statement. Since then, a fear has entered the markets that the SEC could further tighten the regulations. Hence, the prices of cryptocurrencies are dropping thereafter.
Just days back, Coinbase, a popular online cryptocurrency exchange, announced about launching a weighted index fund for cryptocurrencies. The ETF when launched will help in reflecting major trends in the cryptocurrency market similar to how equity index gives a sense of what’s happening in the economy, Coinbase President told CNBC in an interaction. The US investors will get an easy exposure to the cryptocurrencies which will be traded on the exchange, Coinbase President told CNBC. However, only the US residents will be able to invest in the ETF at present.
The Bank of England warning
The Bank of England had issued a warning about the imminent crackdown on cryptocurrencies including Bitcoin, some days back. The bank had said since cryptocurrencies are not being able to perform the most basic function as money, they attract chances of a regulatory crackdown. The cryptocurrencies must be properly regulated on time so as to counter the illegitimate activities, The Bank of England Governor Mark Carney had said.