Bitcoin dominates the market thanks to the ETF fund?
The index measuring the Bitcoin domination of altcoins is 46.83 percent, which is the highest higher result since December 2017, when the Bitcoin price reached a record level of 19,654 dollars.
Bitcoin domination increased by 10 percent in 2018
The Bitcoin domination index measures the share of digital gold in the total market capitalization of cryptocurrencies. The dominance of the leading cryptocurrency gradually grew in 2018 and has increased by over 10 percent since January.
Bitcoin proved to be one of the most stable digital currencies during a huge, 70 percent market correction. A lot of altcoins are still struggling with correction.
Bitcoin store of value
Bitcoin remains in the dominant position, leaving its rivals significantly behind and thus confirming its ability to store the value (store of value) among cryptocurrencies. Bitcoin best stores value because it is the oldest cryptocurrency based on blockchain technology, and its protocol has been running continuously since January 3, 2009, 02: 54: 25 GMT. He stands behind the highest computing power (Hash rate) from all digital currencies, guaranteeing the security of transactions.
Why is Bitcoin dominating?
Recently, we wrote about information that could have caused Bitcoin's price to go up to $ 7,500. Another factor that may affect the increase in Bitcoin's price may be a request to the Securities and Exchange Commission (SEC) to obtain a license to set up an ETF fund filed by Cboe Global Markets Inc. The SEC is in the process of considering the application and will soon be able to grant the company ( CBOE) a desired license to establish an ETCO Bitcoin. Such a fund will become a link between cryptocurrencies and institutional investors.
This process began on 26/06/2018 when the SEC asked industry professionals to comment on the ETF to be offered through VanEck and the SolidX Bitcoin Trust. The first two attempts to create a fund were rejected at the beginning of 2017, and the SEC issued the following statement:
"Based on the previous provisions, the Commission considers that the bitcoin market is unregulated. Therefore, the Commission does not accept the proposed change in the rules as compliant with the Exchange Act. "
SEC regulators announced at the end of June 2018 that they were working on a draft of a new (and less restrictive) legislation on open and low risk ETFs, the aim of which was to increase innovation
in the financial space. This can potentially increase the Trust's chances, as do other projects that want to establish an ETF on Bitcoin in the future.
After positive consideration of the application
If the VanEck SolidX application is considered positive, investors will be able to purchase shares in the Trust fund worth about 25 bitcoins.
"Under normal market conditions, the ETF will use the funds available to purchase bitcoins primarily on non-OTC markets, without leveraging or exceeding the appropriate position limits," the Trust report reads. The fund will be insured against theft and hacker attacks, guaranteeing the coverage of any losses incurred on this account.
"The insurance policy will contain $ 25 million initial limits in primary coverage and $ 100 million in excess, with the option of increasing coverage depending on the Bitcoin value held by the Trust."
ETF Holy Grail for investors
Several financial giants commented that bitcoin-based ETFs are crucial for financial innovation, and companies such as JP Morgan already in February 2018 called them "a holy grail for owners and investors." If the CBOE application is adopted in the coming month, investment options for customers will be launched in the first quarter of 2019.