Bitcoin price at the time of writing remains above the $51,800 level, and the gains over the past two weeks have been quite satisfying. Investors are hopeful as we continue to see closures above the necessary $51,800 for further increases. A few hours ago, the SEC imposed a fine on one of the spot Bitcoin ETF issuers we often hear about. But what was the reason?
SEC and Its Recent Decision
The Securities and Exchange Commission announced today the outcome of its recent investigation into registered investment adviser Van Eck Associates Corporation. VanEck caught the SEC’s attention for failing to disclose the role of a social media influencer in its ETF launch and agreed to pay a $1.75 million fine to settle the matter.
The announcement states:
“According to the SEC’s decision, in March 2021, Van Eck Associates launched the VanEck Social Sentiment ETF (NYSE:BUZZ) to track an index based on ‘positive projections’ from social media and other data. The provider of the said index informed Van Eck Associates that it planned to hire a well-known and controversial social media influencer to promote the index in connection with the ETF’s launch. The proposed licensing fee structure to incentivize the influencer’s marketing and promotional efforts included a scale that varied with the size of the fund; thus, as the fund grew, the index provider would receive a larger percentage of the management fee paid to Van Eck Associates by the fund.
However, according to the SEC’s decision, Van Eck Associates failed to disclose to the ETF’s board of directors the planned participation of the influencer and the variable scale fee structure in connection with the approval of the fund’s launch and management fee.”
Current Bitcoin (BTC) Situation
BTC price has been drawing almost a straight line on the four-hour chart since yesterday, but today there has been a slight start to sales in altcoins. The underlying reason seems to be the approaching weekend. Investors not ignoring the possibility of profit-taking that could lead to further declines in altcoins as weekend volumes weaken are reducing their risk.
If the feared profit-taking starts over the weekend, the intermediate correction predicted by market experts could occur in a low-volume environment. This could mean altcoins testing deeper support levels.
