It is expected that the first exchange traded Fund Bitcoin (ETF) will be approved by February 2019. But some experts said that the ETF may increase the volatility of the market.
How will ETF affect the market?
For several months analysts were influenced by the decisions of the Commission on securities and exchange Commission (SEC) regarding Bitcoin ETF for the cryptocurrency market.
Brian Kelly, a party, earlier explained that the price increase of Bitcoin from 7 000 to 8 000 USD in early August, could be associated with the amount of publicity around Bitcoin ETF.
Last week, when the price of BTC dropped significantly against the US dollar, Kelly stressed that the failure of the SEC on Bitcoin ETF probably affected the market, and investors reacted strongly to the news.
Recently, during the events of proven analyst and bitcoin security expert Andreas Antonopoulos told about the position of the Bitcoin ETF, firmly stating that he is against the introduction of ETFs on the regulated markets.
He also noted that although ETFs have the ability to open a bitcoin market the group of institutional investors and retailers, but they also provide a platform for large investors to manipulate the price of BTC.
“Everyone is happy the ETF. When the ETF becomes available, the price really increases dramatically as the product becomes available for a much larger number of investors. But, on the other hand, commodity markets are strongly manipulated course, and opening these ETF only increases the ability of institutional investors to manipulate prices.”
Given that ETF Chicago Board options exchange (CBOE) and VanEck-SolidX can bring billions of dollars into the Bitcoin market, it is possible that price of BTC will go up dramatically and down in the opening hours of the us stock market when the ETF is launched.
Unlike the futures market, ETF investors can and nepriznannaia to reduce the price. But, for example, if a group of investors decide to use ETFs to manipulate BTC price for profit in the futures market, the bitcoin market could significantly change the picture.
ETFs, futures and long-term growth
In the long term, despite the fact that to manipulate the market in terms of the introduction of non-regulated financial institutions, improve liquidity of the bitcoin, in the period of instability, high volatility and fast growth, publicly traded investment funds can provide a sufficient lever for large investors can turn market trends .Keep You informed of the events of the Blockchain technology and digital Finance.
Author: Ekaterina Medvedeva, analyst Freedman Club Crypeo News