Bitcoin Latest Update: When Will the SEC Approve a Bitcoin ETF?

Bitcoin has slightly recovered its recent losses as it is currently trading at $7,680 compared to yesterday’s value of $7,538. Still, the leading cryptocurrency has yet to climb back to the $8,000 levels, which it previously broke through last July 28.

Its value has declined by 9.3 percent in the past week but its monthly growth is still a solid 17.74 percent, Cointelegraph reported. Despite the decline, CEO and founder of investment firm BKCM Brian Kelly is optimistic that the price correction is merely temporary.

"[Bitcoin has] had a pretty good run from $5,800 up to $8,300, $8,400 or so,” Kelly told CNBC. "So while it might seem crazy to the legacy markets and the bitcoin world, this is just a normal correction."

Indeed, volatility has always been an innate characteristic of Bitcoin, that’s why a lot of traditional traders and prudent investors are staying away from the cryptocurrency. But there are still a lot of people interested in supporting Bitcoin, as evidenced by the growing hash rate of its network.

Still, this growth has yet to propel Bitcoin back to the heights it reached in December 2017, when it was valued at more than $19,000. One of the major reasons for this is investors' lack of understanding of blockchain, the underlying technology that cryptocurrency runs on.

Another is that a concrete regulatory framework has yet to be put in place to protect investors from scams and hacking, which run rampant in the crypto sphere. If investors in Bitcoin and other cryptocurrencies wish to see a global adoption of alternative money, then having a solid legal structure will be one of the major requirements.

But it’s not all negative news that is coming for crypto. There’s the possibility of a Bitcoin exchange-traded fund (ETF) that is currently being reviewed by the U.S. Securities and Exchange Commission (SEC).

A Bitcoin ETF would mean that investors placing money on Bitcoin will be protected by the issuers of the cryptocurrency. This means that even if hacking and other unforeseen circumstances occur and jeopardize investments, the issuers are obligated to protect their clients from these financial threats.

And while there may have been reports of the SEC denying a Bitcoin ETF proposal, that rejection was because of the nature of the proposal and the agency isn’t dismissing a possible ETF in the future. Brian Kelly said that he’s still optimistic that a Bitcoin ETF will be green-lighted by the SEC, although the bullish investor isn’t sure when exactly this will be.