Hello folks!!! I hope that we are all aware of the current market trends and this is likely to be the effect of ETF.
News spreading is that ETF will launch soon into the crypto market. We can see huge growth in bitcoin and other crypto-currenccies too but there is some news which you may not know Which is; bitcoin is not the only currency in the crypto market. There are other crypto-currencies which hold almost half of the crypto market. We can see that in the below data
Why introducing ETF will Skyrocket the crptomarket!!!
When ETF will be successfully applied to these 10 coins which are listed above, big investors will be able to purchase these crypto-curreccies in bulk so that they will easily trade, and this will skyrocket the price of bitcoin and all other crypto-currenccies hopefully.
What is ETF?
ETF is defined as exchange traded fund, and once ETF comes into action, bitcoin and other crypto-currenccies will simply act like any share which we basically trade on share market thereby adding onto the international exchange currencies.
When will ETF come into action?
We heard some news that ETF will come in action in september 2018. However, after september 2018, it will also take some time to set out to run smoothly. Simply saying, lets estimate that it can take 6 to 8 months or it may even fully come into action in 2019.
Will it affect other coins?
As we have seen earlier on, there are about 9 crypto-currenccies which will be launch in ETF . However, the problem is that when these coins will start trading on ETF platform, the prices of these 10 coins will skyrocket and all investors are most likely to trade in these coins. Hence the volume of other coins will be negligible so people who will hold these coins for long period of time may suffer.
Is introducing ETF in crypto-currency good or bad?
As everybody is saying that introducing ETF into bitcoin and other crypto-currenccies will be good for reasons below;
Bitcoin will be accepted by whole world.
Bitcoin will get exposure.
People will start believing in crypto-market
Big investors will come into the crypto market.
Lastly, chances are that the prices will boom.
The bad things which can happen after ETF is introduced into the cryptocurrency system.
Now we know that they are approving only 10 coins for ETF, but we have almost 1700 coins and tokens. So the
problem is, when ETF will come into action, most of the people will only trade in these 10 coins because there
volume will be very high because of the high profits.
These other coins will also give us profit as we know. However, we have only 17,169,637 bitcoins right now, hence everybody will not be able to purchase it because it is limited. So people will try to find alternatives, and in this way every crypto-currency will get exposed.
But in worst scenarios, if bitcoin and the rest of the crypto-currencies do not get much exposure, then it will be bad for the market. Thats just my perception. So cross your fingers and pray to God that everything will go well .
That's it for today
Thank you.
steemit
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