Brian Kelly , contributor to CNBC's Fast Money channel and CEO of BKCM, believes that the Bitcoin market (BTC) is not yet ready for ETFs.
Rumors about ETFs contributed to the July price rally
The crypto-market lost about $ 29 billion in two days from August 7 to August 9. The largest virtual currencies were in the red, having lost 10 to 25% of their value.
The vast majority of analysts cited the Securities and Exchange Commission's (SEC) decision to delay approval of VanEck's ETF Bitcoin. This adjournment justifies the downward trend in BTC prices.
Many investors doubt the viability of the debt, and as a result the regulator's decision was highly anticipated. Speculation has contributed to the fluctuation of prices.
Meanwhile, Kelly advised traders avoid the frantic panic that usually follows the bad news.
"The Bitcoin had a huge run off of $ 5,800, and all because people thought there would be a Bitcoin ETF. The SEC has decided to postpone this decision. "The price of the BTC fell the day after the announcement of the regulator, reaching $ 6,100. Selling in a moment of panic would be a bad decision according to Kelly. There is more than the prospect of a Bitcoin ETF. In fact, approval will probably come in 2019.
"A small spoiler alert on September 30th. The SEC will probably postpone it again because the market is not ready and the SEC has not yet received answers to their questions. "The regulator is reluctant because of fundamental issues, including the question of regulation, lack of liquidity and claims of market manipulation within the cryptocurrency industry.
A surge of Ethereum Classic
While the major virtual currencies performed poorly last week, the Ethereum Classic (ETC) was in the green, beating the Bitcoin and the US dollar.Its price has jumped more than 30% thanks to Coinbase and Robinhood who have recently integrated it on their platform. The ETC market is now available to the US population.
"The Ethereum Classic has increased by 30% compared to last month. The two drivers of rising prices are: Coinbase and Robinhood. Private investors can easily enter the Ethereum Classic market. "The Ethereum Classic is also one of four crypto-currencies to have a trading instrument that facilitates the sale and purchase of retail investors in the US regulated market.
The SEC has specified that the ETC token is not a financial security type. In addition, cryptocurrency is expected to grow in popularity. The virtual currency businesses will be more open to innovations and infrastructure around the Ethereum Classic, which would contribute to higher prices.
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