The US Securities and Exchange Commission () again delayed the decision whether they want to approve the submitted from Bitwise Asset Management or not, and also, requested for public comment. It is obvious that is great potential stimulation to get a bullish market, however, it may have side effect when we have high expectation.
According to the data shown on CoinAll () exchange, price jumped by around 1000USD within one hour, but with much higher volume. On the one hand, it implies that the market needs some correction, and on the other hand, more people are trying to buy at this price. In this case, if price doesn’t go further lower than the support level, we can still hold it and properly wait for the other pump.
In fact, if we look further into the details about Bitwise , the proposal is different from other previously proposed ETFs in that it draws price from different cryptocurrecny exchanges to establish kind of index which can represent the market better. Also, Bitwsie mentioned that there would be 3rd party custodians to hold the physical so that it could meet the regulated requirements. However, even though it looks like Bitwsie has considered everything to persuade the , the came across another delay after the one in March.
What will happen if is approved?
We always said is the key factor for the bullish market. And why? It is easy to understand the fact that if is approved, the reserve asset of actual bitcoins which means the institutional money will be much easier to flow into the market. Thus, we can try to imagine that price going lower even if the approves the will be less possible because many sophisticated investors would accept that risk and rush to buy a as it has been recognized by the agency. There is a huge appetite right now among sophisticated money managers to allocate capital into crypto-related instruments. Therefore, with more money flowing into the market, we can expect the next bullish market.
I know the truth, but why doesn’t like to approve .
One of the most important reasons why the commission has rejected all the proposals is the concerns over market manipulation. , as the agency in USA, will mostly focus on protecting retailor investors from serious loss when they don’t understand the market clearly. Thus, is quietly careful with all the decisions regarding to the since it is still quite small market with great manipulation risks as you can see from the price fluctuation. What is worse, we still not have reliable and authorized third-party custody service provider to guarantee the security of various digital assets. All these concerns make have to consider the situation, and it may bring endless delays before the can find a proper way to solve the problems.
However, with the development of and industry, more traditional financial institutes are on the way to join the market, which will bring us more reliable infrastructures like Bakkt, CME and CBOE, to support the sustainable development of the industry. At that time, will also have more confidence about the market to consider . Let nature take its course, what we should do is to be a hodler.
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Published at Fri, 17 May 2019 06:16:33 +0000
