The first Bitcoin exchange-traded fund (ETF) is expected to be approved by February 2019. Still, there are many experts who stated that ETFs may increase the volatility of the market – especially if something like this happens.
In fact, many analysts have been divided on the effect of the ruling of the US Securities and Exchange Commission (SEC) and its stance towards Bitcoin ETFs on the crypto market.
Brian Kelly, who is a contributor to CNBC’s Fast Money show and a CEO of BKCM, is one of them. As Kelly previously explained, the rise in the price of Bitcoin from $7,000 to $8,000 in early August could be attributed to the hype around Bitcoin ETFs.
However, the recent drop which saw Bitcoin go below $7,000 has been a response after the SEC’s decision to not allow the Bitcoin ETF submitted by Winklevoss. This had a strong impact on the market – and is how the crypto markets went in the red, dropping their prices for days after the announcement.
Another well-respected cryptocurrency researcher and analyst named Andreas Antonopoulos explained his stance towards the situation regarding Bitcoin ETFs and their (possible) regulation, commenting:
“Everybody is so excited about ETFs. What we have seen in other markets is that when an ETF becomes available, the price really increases dramatically, as suddenly that commodity becomes available to a lot more investors and these investors pile on. But, the other side of it, is that there are always these claims that the commodities markets are heavily manipulated and opening up these ETFs only increase the ability of institutional investors to manipulate the prices of commodities.”
From all this, it is highly possible that Bitcoin’s price can be manipulated. Hopefully, the decision will pass and we will see Bitcoin in the green again – stabilizing above the $10,000 mark before heading for a new all-time price record.
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