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Exclusive: Bitcoin [BTC] doesn’t care about the Bitcoin ETF, etoro’s Mati Greenspan




Exclusive: Bitcoin [BTC] doesn’t care about the Bitcoin ETF, etoro’s Mati Greenspan
Source: Pixabay

Bitcoin [BTC] and its tryst with the US Securities and Exchange Commission is set to climax with the imminent discussion regarding the hotly anticipated ETF, which has everyone in the community on the edge of their seats. Or does it? Some are not swayed by this publicly traded BTC product, stating that it will have little impact on the overarching goal of decentralized currency.

Mati Greenspan, the senior market analyst at eToro, is of this opinion. In an exclusive interview with AMBCrypto, the acclaimed markets analyst chided the ETF stating:

“The idea of the SEC approving a Bitcoin ETF is basically saying that the government is going to approve something that the banks made. I don’t think Bitcoin cares very much about that.”

Speaking initially about the Bitwise Asset Management report submitted to the SEC with reference to their ETF proposal, Greenspan stated that it addressed two key points. Firstly, it shed light on “market manipulation,” and “wash trading,” which the members of the SEC have voiced their concerns regarding. Last month, the chairman of the SEC, Jay Clayton stated he was on the fence regarding the ETF stating the above reasons.

Additionally, the firm also tabled a new method to calculate Net Asset Value [NAV] based on the figures of ten cryptocurrency exchanges reporting “real volumes.”

In light of this report and, in particular, the two key points highlighted by Bitwise, Greenspan added that the proposal has “a good shot” of approval by the SEC. He further added that, after the change in the SEC members, many are “more bullish on crypto.”

Despite the next ETF hearing set for May 19, 2019, Greenspan was fairly certain that the same will be delayed yet again by the SEC. His expectation was echoed by Jake Chervinsky, a member of the securities litigation team at Kobre & Kim who stated, back in March:

“The SEC’s *final* deadlines will be October 13 and October 18, 2019.”

If the ETF is approved by the SEC, it would open “larger crypto investments” allowing hedge fund managers to enter the space. However, in Greenspan’s opinion, this would only add to Bitcoin as an investment vehicle, as these managers will not “try to figure out what cold storage is,” and will only enter for the price volatility. He stated:

“Basically, having an ETF, is another vehicle that they can invest in Bitcoin, in an easy way.”

He added that a “significant impact in the price” could manifest by the approval or rejection of a Bitcoin ETF, however, he cautioned stating that this will affect the market “only for a short period of time.”

The Bitcoin ETF would “go a long way to providing liquidity” to many players in the market, but are just another channel to access Bitcoin’s investment capabilities and these products are not “built on actual Bitcoin,” stated Greenspan. He described Bakkt service as “incredibly positive,” especially their plans of a credit card linked to a “Bitcoin account.”

Overall, these developments will help the case of “adoption” and Wall Street see an increase in volume by a trillion dollars, or so, but the goal of Bitcoin will always remain to become a ubiquitous, universal, censorship-resistant global money, and this will not change concluded Greenspan.

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JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise




JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:

“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.

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