The crypto market may be bearish this 2018, but how the market progressed in terms of regulations and maturity is something worth looking into. In fact, many believe that institutional investors are going to participate in the market soon. And this could be a game changer considering the capital that they can bring into play.
For “The Godfather of ETFs” Reggie Brown who works as the managing director of Cantor Fitzgerald, he believes that a Bitcoin ETF will become a reality “no time soon”.
November 5 Deadline
What could be the effect of a Bitcoin ETF? This could ultimately mean that it becomes easier for institutional investors to participate in the crypto market. Over the past few months, we’ve seen the rejection of different Bitcoin ETF applications including that of the Winklevoss twins. Cameron and Tyler Winklevoss already attempted to twice to submit their Bitcoin ETF application only to be denied by the US Securities and Exchange Commission.
However, the recent denial of their Bitcoin ETF application was due to the possibility of market manipulation. The good news is that the agency decided in August to review the nine earlier rejected Bitcoin ETF applications. There was a new deadline that was set on October 26th. However, the actual deadline is on November 5th. The SEC announced the review of Bitcoin ETF applications by Direxion, GraniteShares, ProShares. According to a document, “Accordingly, IT IS ORDERED, pursuant to Commission Rule of Practice 431, that by November 5, 2018, any party or other person may file a statement in support of, or in opposition to, the action made pursuant to delegated authority”. It only means that there will be a decision soon from the agency what their decision is.
Rejection of VanEck Bitcoin ETF Could Mean Bears Are Back?
Just how important is the approval of a Bitcoin ETF application at this point? Alex Kruger who is a well-recognized trader and technical analyst thinks that the rejection of VanEck, Solid X, and Chicago Board Options Exchange (CBOE) will trigger a bearish trend that can pull Bitcoin price to $6,000 or even as low as $4,000.
Kruger also commented on how Bakkt could potentially play a massive role in the recovery of Bitcoin by the time that we enter 2019. According to Kruger, “Possible outlook for BTC: First, bull run on BAKKT & renewed ETF approval narrative early 2019. Second, ETF denied Feb 27, massive crash, goodbye 6K, hello 4k, cleanse all weak hands lastly, halvening 2020 narrative and re-adjustments lead to sustained bull run for the rest of 2019 & 2020”.
Bitcoin has been seen in the last few weeks as a stable cryptocurrency. Many believe that it is because of the fact that many are holding on to their Bitcoin waiting for it to go up once again. And this isn’t far from possibility. There are many signs that Bitcoin could experience another bull run. However, just like what Kruger mentioned, it is also possible that Bitcoin could even dip to $4,000 by next year in case Bitcoin ETF application by Solid X and VanEck gets denied.
