Will the First Bitcoin ETF Make the Crypto Market Even More Volatile?
The first Bitcoin exchange-traded fund (ETF) is expected to be approved by February of 2019. But, some experts have stated that ETFs may increase the volatility of the market.
How the ETF Will Impact the Market
Over the past few months, analysts have been divided on the effect of the ruling of the US Securities and Exchange Commission (SEC) regarding Bitcoin ETFs on the crypto market.
Brian Kelly, a contributor to CNBC’s Fast Money and the CEO at BKCM, previously explained that the rise in the price of Bitcoin from the lower end of $7,000 to $8,000 in early August could be attributed to the increasing hype around Bitcoin ETFs.
Last week, as the price of BTC dropped substantially against the US dollar, Kelly emphasized that the SEC’s rejection of the Winklevoss Bitcoin ETF likely had an impact on the market and that investors have overreacted to the news.
Recently, in a Q&A session, well respected cryptocurrency researcher and security expert Andreas Antonopoulos disclosed his stance on Bitcoin ETFs, firmly stating that he is against the introduction of ETFs in regulated markets.
Antonopoulos said that while ETFs have the ability to open the Bitcoin market to a group of institutional investors and retail traders that have not been able to trade the dominant cryptocurrencies due to issues pertaining to regulation, they also provide a platform for large investors to manipulate the price of BTC.
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