It is expected that the first Bitcoin exchange-traded fund (ETF) will be approved by February 2019, as per the latest Bitcoin ETF news. However, experts are of the opinion that ETFs may increase the volatility of the market. Amidst all speculations pertaining to the Bitcoin ETF approval, analysts have been divided on the impact of the SEC ruling on the crypto markets.
CEO, BKCM who is also a contributor to CNBC’s Fast Money, Brian Kelly explained that the Bitcoin price rise from the lower end of $7,000 to $8,000. It was noticed during the early part of August and maybe due to the increasing hype around Bitcoin ETFs.
When the BTC price dropped significantly last week against the U.S. dollar, Brian Kelly stressed on the fact that the rejection of the Winklevoss Bitcoin ETF, which made breaking news lately, had an impact on the market. According to him, investors have overreacted to the news.
In a recently held Q&A session, Andreas Antonopoulos, a renowned cryptocurrency researcher and security expert, shared his stance on Bitcoin ETFs. He firmly stated that he is against the introduction of ETF in regulated markets.
While ETFs have the ability to open the Bitcoin market to a group of traders and institutional investors, according to Antonopoulos, they have not been able to trade the dominant cryptos owing to regulatory issues. ETFs have provided a platform to large investors to manipulate the Bitcoin price.
For people who have been closely following the Bitcoin ETF news, unlike futures contracts, investors do not necessarily have the incentive or the motivation in the ETF market to intentionally bring down the Bitcoin price by manipulating the price trend. However, as explained in the CCN news report, if a group of investors decides to utilize the ETF market to manipulate the BTC price to record gains in the futures market, the Bitcoin market may become more volatile.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy the website. ]