The cryptocurrency market has enjoyed its fair share of success, but lately, this industry has been mired with a slew of challenges that have thwarted northward movement. Investors had their sights on the launch of Bitcoin ETF which was expected to inject new life, but instead, Bitcoin recorded staggering losses in the past two days with its value dropping by $30 billion. This dive was triggered by a decision of the Securities Exchange Commission (SEC) to postpone the highly anticipated Bitcoin ETF approval. Shareholders were hoping for a favorable outcome that would have made it possible to trade this altcoin on the Chicago Board Options Exchange (CBOE). As a result, investors are racked with nervous energy and are offloading Bitcoin reserves to cushion themselves from future losses.
As per Brian Kelly, the founder of BK Capital Management observed that investors should stay put and refrain from making such hurried decisions. Further, he notes that getting a Bitcoin ETF approved may take longer as the SEC is yet to get answers to even the most basic queries regarding this altcoin. He warns that the new decision date of September 30th may not yield any positive news either and that the actual approval of Bitcoin ETF is not likely to happen in 2018. Therefore, Brian advises investors to train their sights on emerging opportunities such as Ethereum Classic (ETC) which gained market value by 30% after being integrated into the Robinhood and Coinbase platforms.
Ethereum becomes the inaugural cryptocurrency to allow public trading among investors in a highly controlled market like the US. This move has made it considerably easier for backers to get their hands on ETC, an altcoin that previously seemed untouchable to many. More businesses in this industry are expected to tailor their infrastructure to suit ETC and subsequently, the trading volumes and value of ethereum classic will soar.
While things are not looking particularly great at this juncture, there is still hope that Bitcoin will regain its position in the crypto market sooner than later. One of the strong indicators of a glimmer of hope is that Wall Street’s indomitable regulator did not squash the idea of a Bitcoin ETF. Rather, it cited prevailing concerns that made it impossible to Greenlight the ETF as things stand. One of those concerns, as Brian Kelly put across, is that the crypto market is not prepared for this ETF contrary to what many investors claim. In addition, there is more than meets the eye, which only serves to compound the complexities of this matter.
Charles Hayter, the co-founder of CryptoCompare surmised that the pending decision will be a significant catalyst for the market whichever way things turn out. The stakes are high and altcoin investors everywhere can only hope that the SEC rules in their favor so they can embark on racking in the big bucks. Industry pundits observe that if all goes well, the proposed ETF could propel Bitcoin to reach the higher echelons of investment such as 401(k). Whether this dream comes to fruition or not is just a matter of time.