Stop ‘Overreacting’, Crypto Hedge Fund Vet Tells Bitcoin Investors

Marco Green
August 11, 2018

Many in the cryptocurrency community believe that a Bitcoin ETF is the next logical step in the evolution of the market.

Cryptocurrency markets fell as a result. As we already reported, the final decision date of the VanEck Bitcoin ETF has been postponed to 30.09.2018.

Since the announcement was made by the SEC, however, other commentators have argued that bitcoin and cryptocurrencies don't actually need an ETF, and that the market shouldn't necessarily expect one, at least not any time soon.

And when it comes to discretion, the Securities and Exchange Commission's decision to further explore the creation of Bitcoin-backed exchange traded fund products is good for the market, according to cryptocurrency industry insider and founder of Blackwell Capital Brian Sewell. This is the company's third attempt to get a bitcoin ETF through the SEC's door, and the group has consistently shown that it is either completely unaware of what to do, or simply isn't interested. The SEC received more than 1,300 comments on the proposed rule change as of August 6, it said.

Furthermore, citing the SEC's "concerns regarding bitcoin ETFs and retail investors", the presentation notes that "the initial share price will be set at a level created to ensure that only institutional and "non-retail" investors will be able to purchase shares", which is a price per share of $203,750 as of July 30. The approach of the SEC is conservative and cautious, as it must be in an emergency for their decisions straight.

"The market overreacted to a slew of applications to the SEC that had no chance of getting a quick acceptance and are now overreacting to the highly expected outcome", said Hany Rashwan, chief executive officer of crypto startup Amun Technologies Ltd.

The SEC denied a request to list a Bitcoin ETF run by the Winklevoss twins at the end of July, while a massive wrong-way bet on Bitcoin at Hong Kong-based exchange OKEx that burned counterparties dealt a fresh blow to confidence in digital currency trading platforms.

However, given the recent price plummet, it would seem that there is really need for much emphasis on bitcoin ETFs and a real need for a bitcoin ETF to be approved. Experts like Brian Kelly of BKCM LLC have earlier pointed out that an SEC-approved BTC ETF in 2018 is highly unlikely.

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