Crypto Experts Warn Against Selling Off Bitcoin In Wake of ETF Delay
Crypto sunk hard today and rapidly after news was released that the Securities and Exchange Commission (SEC) delayed approving the highly anticipated VanEck Bitcoin ETF.
In 48 hours, the crypto market lost billions of dollars with most major cryptos dropping in value 10–25%.
Experienced crypto investors expected the SEC to delay approval so there is a possibility that this downward trend is just a standard sell off. But, there are some investors that sold quickly over the past 24 hours.
Brian Kelly, Fast Money Contributor, Says Selling is Wrong
“It [bitcoin] has had a tremendous run off of $5,800, and that was all really because people thought there was going to be a bitcoin ETF. The SEC came out and postponed that decision. A little spoiler alert, on September 30, SEC will likely postpone in again, because the market is not ready for it and the SEC hasn’t had the answers to their questions yet.”
This is VanEck’s third time at trying to get a Bitcoin ETF pushed through and the SEC declared they are pushing out their decision until September 30, 2018.
Honestly, the decision will likely get pushed again at that time because the world is just not ready for this product. That’s my opinion anyway.
What is an ETF?
Since I have been asked this many times today, an ETF is a financial product that keeps track of the price of an asset that is listed on an exchange. This means that investors don’t have to actually buy the asset in order to realize gains from it.
This would be a “safer way” for institutional investors to get involved in crypto rather than buying Bitcoin the old fashioned way on a crypto exchange and holding until the price goes up to realize gains.
Where do we go from here?
Interest in the crypto realm seems to be increasing and new technology is being added to the space every day with so many new projects coming together.
This attempt at a Bitcoin ETF was not flat out denied by the SEC like the most recent attempt from the Winklevoss twins so there may be hope that the SEC is trying to understand crypto and trying to work with the crypto community to bring about change.
VanEck addressed all of the questions raised by the SEC during their previous attempt at filing and the market itself has changed tremendously in the past year.
The changes are:
· Derivatives markets for Bitcoin
· Set share prices will be set at $203,750 to avoid the SEC concern of retail investors raised previously
· The OTC Index will be used for pricing to address raised concerns of price manipulation
In order for us to see the change we need, both sides (the crypto community and the public) need to reach across the obvious divide and learn to work together.
If you are selling right now, that really isn’t the best idea according to the industry experts because now is the time you should hold and just wait for the next run up.
We likely haven’t hit a hard bottom yet so we shall see many more bounces before a solid run up that will indicate the end of this current down market.
Do you think the ETF will be approved in September?
Do you think it will be pushed back again?
Do you think it will be rejected?
Leave a comment and let me know what you think!
Thanks for reading,