Founder & CEO of BKCM LLC- a digital currency investment firm, Brian Kelly gave his insights on the possibility of the cryptocurrency getting an approval for exchange-traded funds (ETFs) in 2019 to which he said that the chances are minimum in an interview.
The crypto expert is certain that this year will prove to be better for the digital currency than last year as he analyzed the crypto market. Mr. Kelly believes that the time when cryptocurrency share prices were falling is almost coming to an end now but before that, the cryptocurrency might see yet another downfall, stating:
We are somewhere close to the end of [the bear market], but we might have another dip lower, it wouldn’t surprise me at all.
He is quite confident that the bad times in the crypto industry might just be ending as cryptocurrency prices might finally get their worth back however, there is still no guarantee. He further on continued:
Probably in 2019 the focus will be on currencies — Bitcoin, Litecoin, some of those — because we have quite a bit of geopolitical tension in the world. We are starting to see some global macro players use Bitcoin as alternative to their gold position, or as a way to hedge against fiat currency fluctuations and volatility.
The founder and CEO of the digital currency investment firm thinks that this year, the attention might shift to the cryptocurrencies due to the problems surrounding the political relations across the borders and the flagship cryptocurrency is considered to be a gold alternative by the market leaders across the globe which can also be used as a safe house from the uncertainty and riskiness of the fiat currency. The analysis is not wrong at all considering the functions of the cryptocurrency and how it can be utilized in different circumstances. Thus, the crypto expert is positive that bitcoin will receive a much better response this year in comparison with last year especially among the known investors.
Moreover, when Brian Kelly was queried on the possibility of the digital currency receiving acceptance for exchange-traded fund (ETF) by the government authorities, he clearly indicated that the digital currency has no chance for that this year. Since the digital currency is currently in a risky position in the crypto market where some analysts believe that on further decrease, it should take a rest from the industry and some believe that it might face an uplift this year with increase in demand, Mr. Kelly holds the opinion that it is too soon for the digital currency to even think of getting a government approval for exchange-traded fund (ETF) right now.
The Bitcoin ETF is an investment tool overseen by regulatory authorities which makes the cryptocurrency more protected, attracting more investors to purchase the digital currency but that is a question of whether or not it receives permission from government institutions, which at the moment seems unlikely.
Last year, many applicants have looked to acquire approval from the United States Securities and Exchange Commission (SEC) but have still not received any response from the government authority as there are several factors which are taken under consideration before granting ETFs and according to Mr. Kelly, “there is too much that is unresolved”, meaning that to achieve this objective, a lot still must be done and the process is expected to take more than one year.
Bryan Kelly holds the opinion that a different nature of financial crisis is on its way in the financial market but this one might work in favor of the cryptocurrencies and it may even back the idea of considering the digital currencies as an alternative to the fiat currency and for all the right reasons.
Therefore, it is safe to say that bitcoin will experience better times ahead and is also growing rapidly however, the cryptocurrency is still not ready for the grant of exchange-traded fund, at least not this year.