Market Capitalization See Slight Signs of Greens – Analyst Predicts ETF Approval in Feb 2019

The coin market has shown signs of growth finally after a long run of bearish behavior. The market has been into dark days for the past month. The market capitalization hit $303 billion at the end of July, but everything went downhill from there. The market capitalization stooped to $191 billion, losing almost 37% of its value, but for the past few days, the currencies have seen a slight bullish pattern with signs of stability which is pushing its way to a gradual increase.

src: coinmarketcap

Rising from $210 billion, the market capital stands at $216 billion as of press time.

After the continuous plunge, the cryptocurrencies finally saw the light of day as the coin market showed signs of green all around. Only 14 of the top 100 cryptocurrencies plunged in the salt 24 hour period. The proportion is obviously small but it shows positive signs.

src: Coin360.io

The info-graphics show the percentages of growth of the individual currencies with minimal signs of red. There was, however, a spike seen a few days back, one of the reasons was the repercussion of the US and China trade war, which caused a dip in the Chinese currency. Resultantly, a lot of Chinese people put their investments in BTC as they saw it better than gold and more readily available.

Few days back, the dramatic bloodbath event and the bear market began with the rejection of the ETF proposals back to back. The applications of different parties were rejected which left severe bruises on the market capitalization as all the currencies suffered the consequences, the reason for the rejection being manipulation and fraudulent activities prevalent in the cryptocurrency world. The regulatory body that is overseeing the establishment of this ETF is the United States Securities and Exchange Commission (SEC). SEC hasn’t been quite in the favor of the ETF approval and doesn’t seem to show signs of approving it down the road. SEC put forward its concerns back in January, which were regarding the issues of valuation, liquidity, custody, arbitrage and potential manipulation and other risks. Regarding the issue of manipulation, it was stated by the SEC that:

The Commission has also discussed concerns relating to the risk of fraud and manipulation in cryptocurrency markets in orders denying exchange proposals to list the shares of commodity trusts that would hold cryptocurrency. In addition, a number of recent media reports have highlighted a range of possible vectors for potential manipulation of cryptocurrency markets. Although some funds may propose to hold cryptocurrency-related products, rather than cryptocurrencies, the pricing, volatility and resiliency of these derivative markets generally would be expected to be strongly influenced by the underlying markets.

Although the ETF proposal of different parties hasn’t seen any signs of approval and the overall market has suffered, but SEC clarified that they are not against the underlying technology of crypto i.e. blockchain. They’re just against the fraudulent activities,

Although the Commission is disapproving this proposed rule change, the Commission emphasizes that its disapproval does not rest on an evaluation of whether bitcoin or blockchain technology more generally has utility or value as an innovation or an investment. Rather, the Commission is disapproving this proposed rule change because as discussed in detail below, BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section 6(b)(5), in particular the requirement that its rules be designed to prevent fraudulent and manipulative acts and practices.

Bulls of the market

Even with the disapprovals, the bulls in the market still have been positive about the growth of BTC. Ran NeuNer has been particularly solid with his prediction.

Although SEC has been skeptical about the ETF approval, few analysts say that they would soon be considering the ETF approval. Brial Kelly, the analyst from CNBC predicted that the ETF would be approved by February 2019.

But, for the approval, he says that SEC needs a surveillance ability so that they are aware of all the fraudulent and manipulative activities on the network which concerns them. After they have this ability, their major concern would be checked from the bucket list and there wouldn’t be any reason not to approve the ETF. This approval would give crypto world the stability it demands and the institutions that are willing to dive into the crypto market wouldn’t have hesitations.

Shehryar Hasan

Performing artist, guitarist and sub-editor at BlockPublisher. Shehryar is an electrical engineer and blockchain enthusiast. He holds investments in bitcoin, ethereum, OST, TRX and Ripple. Email: shehryar@blockpublisher.com or contact the editor at editor.news@blockpublisher.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.