Cryptocurrency Index fund and its impact on Cryptocurrency Market
The blockchain based phenomenon has significantly affected the financial market, ever since BTC came into limelight and started getting attention, from the investors all over the globe. Now, that the popular cryptocurrency Bitcoin has already downed the “Bull Run” road since starting of the June 2018, all eyes are set on this Crypto Coin. The popular digital asset Exchange, “Coinbase” has recently announced to launch Cryptocurrency Index Fund for the investors. Weighed by the market cap, it will directly affect all digital currencies that are traded on GDAX. It allows the U.S. traders and investors to participate in Index funding, starting with the investment of $10,000. Not to mention, the increasing popularity of cryptocurrencies has influenced the hedge and index funds in a profound way.
BTC BULL RUN AND CRYPTO MARKET
Even though, year 2018 was a bad start for all cryptocurrencies and brought despair among the investors, experts are optimistic for the comeback. Especially, with the “Bull Run” that has initiated in the first week of June this year, BTC and ALTcoins will have significant price hike in the last quarter this year. The “Bearish” does not affect the optimism of market experts because Bitcoin dictate the thermostat of the Cryptocurrency Market. In simple words, digital currency will continue to dominate and attract young and enthusiastic investors in the coming years. Since BTC has already been proven to be a benchmark for other digital assets, it significantly impacted on the ALTcoins. In the first week of the April 2018, top digital currencies faced value drop from 11.6% to 15.9%. Ethereum however, dragged right under the bus and lost a huge amount of value. Now that the “Bull” has unshackled and is on the “Run”, crypto market will see noticeable price hike in almost all the top Cryptocurrencies. Things will get interesting later this year. After all this is not the first time BTC has been through such a lengthy “bearish” cycle. Volatility is not so uncommon when it comes to a digital currency. There was a time when BTC dropped by 99%. Hence, the current dip doesn’t seem to affect much in the cryptocurrency market.
IMPACT ON CRYPTO MARKET
As Coinbase recently announced the initiative for Cryptocurrency Index funding, it is directly going to give upthrust to the global crypto market. Rather than choosing individual assets, investors can directly track the performance of an entire digital assets. It not only brings global exposure to the digital currencies, but also enhances the potential of the crypto asset as a whole. At this point, Coinbase made this service available to the U.S. based investors only. Though, in the coming years, Coinbase may extend their service to other countries as well.
CONCLUSION
It is hard to believe that the technology (Cryptography) that was once used during The World War II, would revolutionize the financial market one day. The blockchain phenomenon is not only changing the exchange and trade sector, but also encouraging the decentralization. In simple, the blockchain technology is giving birth to the endless possibilities for the welfare of the mankind.