The BTC’s ETF has been a subject of interest for many for quite a while. It all started with the proposal of the BTC ETF presented by the Winklevoss brothers. The proposal was straight up rejected by the SEC considering the manipulative and fraudulent activities happening in the crypto space. Events where spikes were observed by tweaks in other crypto currencies, like the event with Tether and BTC. Events which were making the market more centralized than decentralized. Other events where the market was becoming prone to hacks and events of hackings were reported frequently, either by phishing or manual ways of altering addresses etc.
One of the most notable and talked about factor was that of volatility. The market had booming volatility last year when the prices of the currencies were showing random plunges and surges. BTC for instance hit its all time high last year in December, while this year, the premium currency lost almost 70% of its valuation. Other currencies were also dragged by BTC because of the high dominance factor which drove the market.
Why ETF? the significance mainly lies in the fact that once the ETF would be approved, it would become an official trusted store of value which would then bring brands and institutions to invest in the crypto space, which would in return bring in masses. The elimination of skepticalism would also give the market a boost for a bullish run, which is being looked forward to by the current investors and hence, the demand for the ETF is increasing by day.
The sentiment, however, is still mixed about the ETF. Big names of crypto have their opinions about the ETF, both negative and positive. Some believe that the ETF might not be approved, while others think thatthere are other factors which might prove to be more important for crypto world than the ETF, the last category is the analysts who have their time predictions relating to the ETF approval.
David Gokhshtein, the entreprener, crypto expert and member of the Forbes’ finance council presented his views saying that the institutional trust can be build better with platforms like Bakkt. ETF wouldn’t help the market capitalization so much in the long run like these platforms would, which bring institutions in to form alliances with crypto startups. He stated talking to BlockPublisher,
Bakkt would help the market long-term. ETF is nothing but short-Term play.
It’s a rather bold statement to make considering the market situation and the sentiments of crypto world relating to the ETF.
The controversial personality of crypto, Dr. Craigh Wright seemed to be pretty negative relating to the ETF topic, he let out hi angst in his tweet stating,
ETF for BTC is a single asset porfolio with fees to manage something CoinBase would even do more effectively. If you think an ETF is of value to Bitcoin – you are either a scammer or scammed. Bitcoin is cash, use. Let BTC have an ETF, it will end BTC.
The co-founder and partner at Morgan Creek Digital Assets and the crypto personality Anthony Pompliano, on the other hand, thought that the ETF approval would bring stability to the market and also a lot of people to invest in the asset. Which also seems to be a logical statement to make considering the public sentiment. An asset which is approved by the security commission would probably get the eye of the institutions and general public. He told BlockPublisher,
In my opinion, it is unlikely that the ETF gets approved in 2018. When it is approved, the financial product will (1) increase the stability and safety of the asset, while (2) increasing access to the asset for a reasonable amount of people. With that said, I am less confident in a major price movement because of an ETF approval. Time will tell.
Giving similar opinions about the ETF approval, with a bonus BTC price prediction of BTC pre-approval, Thomas Power shared his opinions saying that the BTC would probably be approved in 2019 after the inevitable market fall. Where the equities, properties, stocks and everything related would fall to 50% of its initial valuation. Referring to the global economic crisis which is expected in 2020-2022. According to the board member of 9 spokes, SEC would give BTC a better brand image and will kick out the skepticalism which is surrounding the market once the ETF is approved. He explained his predictions saying,
We’re heading for $3,000 before ETF approval. SEC will give BTC brand confidence in 2019, rest will follow in 2020 post crash.
Brian Kelly also predicted Feb 2019 to be the month of the ETF approval.
The market has become fairly stable now a days, the market capital has stabilized itself to the valuation of $210 billion with minor spikes here and there. This stability gives the sign that the market is heading towards the point where the volatility is leaving while the liquidity is sliding in. Consequently, it can be extracted that the manipulative and fraudulent activities are leaving the market for good. This might be the point when the SEC actually wouldn’t have much to say against the approval as the pressure is also building up while the market is stabilizing. If the stability is retained, it is expected that the SEC would look into the approval.
Once the ETF is approved, according to Thomas Power, the market is in for a bullish run with unrealistic surges. He stated his predictions talking to BlockPublisher,
… on course then for $100,000 in 2023, $500,000 in 2025 and $1m in 2038.
For the market to boom in a way that Thomas Power and the other bullish analysts predict it to boom, it is hoped that the SEC actually considers the approval as soon as possible for institutions ot dive into the space, increasing the market capital and stabilizing the market.