The first country in the world that has officially made Bitcoin legal tender, El Salvador, has a habit of buying the dip whenever possible. The latest dip occurred on Thursday morning when Bitcoin fell just under $60K. Amid the latest price drop, El Salvador’s President NayibBukele decided to immediately buy the dip, using the country’s resources to get 420 BTC. The total purchase was around $25 million, adding to the already massive collection of BTCs El Salvador holds.
The South American country announced the switch from local currency to Bitcoin last year. While many believed it’s a PR stung, the country officially made Bitcoin legal tender in September. Many have protested this decision yet President Bukele intends to see it through, occasionally buying the dip whenever possible.
It will take a year or so according to experts to see if the experiment in El Salvador succeeds. Earlier this week, the government removed a pricing feature from its BTC wallet Chivo. It allowed users to exploit a loophole in order to make profits on trades. The loophole is now closed, but it’s unclear if the government will punish those who already made profit.
Will the SEC Reject Leveraged EFTs?
Last week, the SEC quickly approved the launch of the first Bitcoin futures EFT. Fund managers were bent on flooding the market with competing products as soon as the decision was brought. However, it now seems that the prospect of leveraged Bitcoin funds being launched soon is still ways off.
According to well-informed sources, the SEC has informed Valkyrie Investments not to proceed with the planned leveraged EFT. The fund initially proposed an idea for a Bitcoin EFT that would use 1.25 times leverage which will amplify the returns.
It seems like that idea will be shelved for the time being. Sources from the SEC reportedly said that it would come in the future, but for now, the agency wants to limit Bitcoin EFTs to unleveraged products only.
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