The Chairman of the Securities and Exchange Commission [SEC], Jay Clayton, is still on the fence about the hotly anticipated Bitcoin ETF, citing a list of conditions that should be met prior to its approval.
In a recent interview with FOX Business, Clayton stated that his concern with giving the green light to public trading of Bitcoin was the digital asset’s vulnerability to manipulation. Citing the volatility of the coin, the Chairman wanted to ensure investors were kept safe from untoward market movements.
“What I’m concerned about at the moment is if it can be reasonably demonstrated that the underlying trading is generally not manipulated, it’s happening on reliable venues with good rules and that custody is something we can feel comfortable about.”
The SEC is looking at proposals from several companies regarding the ETF. Last year, Clayton rejected one of those from the Gemini exchange founders, Cameron and Tyler Winklevoss.
VanEck, an investment firm, SolidX, a financial services company and the Chicago Boards Options Exchange [CBOE], still await a decision on their bid for the Bitcoin ETF, which was filed back in January. The crypto-centric financial firm, Bitwise Asset Management had also sent their application for the ETF in February.
The Chairman clarified that he hadn’t decided which company will spearhead the ETF project, nor did he opine whether any of the applicants satisfied the rules of the issuance. However, the SEC will make a decision regarding the Bitcoin ETF in the coming months, he said.
Despite the Chairman’s uneasiness with approving the cryptocurrency Exchange Traded Fund, he hailed the technology behind Bitcoin,
“I think this technology has and is already demonstrating pretty significant promise, but it’s demonstrating significant promise in the places where it’s consistent with our approach to capital raising in the past.”
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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