Not more than a month since the SEC decided to delay the decision on the impending bitcoin exchange-traded fund (ETF). The SEC is set to make a decision within the next 24 hours.
Following the decision by the SEC to delay the outcome of the pending proposals’ surrounding the bitcoin ETF’s, the cryptocurrency markets plunged further.
A number of bitcoin ETF applications have been submitted, the first one which was rejected by the SEC was the proposal submitted by the Winklevoss twins via Gemini exchange. A number of reasons were stated by the the SEC following this decision, although, they have asked for public feedback on bitcoin-based products such as bitcoin ETF’s, as well as publishing a letter in January pointing to “significant investor protection issues that need to be examined” before sponsors can offer these funds to retail investors.
ProShares Bitcoin ETF decision in next 24 hours
The next application in line for a decision is the on submitted by ProShares, the decision could have a huge impact on the cryptocurrency markets, whatever the decision may be.
In the last week it has emerged that bitcoin ‘short’ positions have hit record highs. This negative movement from traders has indicated that the general feeling is the decision from the SEC will be to decline the application from ProShares. Should the decision be an approval a lot of investors could be out of pocket.
“The US Securities and Exchange Commission (SEC) is set to make a final decision this week on the application from ProShares for a Bitcoin Exchange Traded Fund (ETF). And the regulator has another three to consider within the next 6 months. But not much has changed since July when the SEC rejected the Winklevoss Bitcoin ETF for the second time. Cboe President Chris Concannon says ‘the problem with a futures-based ETF is, what is the right level of liquidity? It’s never been tested before.”
Wall Street could be joining the crypto revolution
Speculation surrounding Wall Street and cryptocurrencies continues to be at the heart of crypto markets. It is being reported that Wall Street interest in crypto is as an all time high.
Although the general crypto markets have seen an 80% decline throughout 2018, Wall Street firms are showing particular interest in bitcoin and crypto related products such as, crypto custody and asset management.
In a recent study by Sanford C. Bernstein & Co. analysts have found that strong performance on crypto exchanges combined with 2018 bear market has led to rising demand for bitcoin and crypto products from an increasing number of Wall Street firms.
“As the crypto-asset class seasons and institutional demand builds, there are a plethora of opportunities for traditional firms,” the analysts told Bloomberg.
Will Wall Street enter crypto
Because of increasing demand on cryptocurrency exchanges, like Coinbase, Binance and Robinhood, with the former launching a number of new products such as Coinbase Custody. Analysts now believe it is a matter of ‘when’ not ‘if’ as to Wall Street entering cryptocurrency markets in some way or another.
The increase demand will flow out into Wall Streety firms and they will be simply unable to not delve into the crypto markets, whether it is by creating exchanges, launching custody products or assets management ventures.
Wall Street v Bitcoin ETF
The majority of investors believe that a bitcoin exchange traded fund (ETF) is what is needed for the current bear market to reverse. A bitcoin ETF most would for certainly invite new money into the crypto markets, but most importantly institutional money. Many believe the pending application with the SEC currently from VanEck could be the key to a crypto market revival.
The SEC have however, pushed back the decision on the long awaited bitcoin ETF. Many investors have took this a s negative sign.
But how does a bitcoin ETF compare to the influence of Wall Street firms?
Lets not forget, Wall Street firms represent some of the largest firms in the world. With the largest and richest clients across the globe. Adoption from Wall Street firms would not only see a lot of new money enter, but would also take us closer to mass adoption. Which is argued as the most important thing for bitcoin and cryptocurrencies.
If we were to edge close to mass adoption then we may well see prices rise more than a new bitcoin related product launching.
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