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Bitcoin ETF Possible in 18 Months: Former Goldman Sachs Executive

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Investors awaiting the arrival of a bitcoin exchange-traded fund (ETF) should’t get their hopes up, according to Ali Hassan, a former Goldman Sachs executive currently running a cryptocurrency asset management firm. In Hassan’s view, bitcoin’s ‘holy grail’ is certainly coming, but not before regulators fully dissect its implications on consumer safety.

Bitcoin ETF: Timelines and Expectations

In an interview with Bloomberg Markets, Hassan predicted that a bitcoin ETF will be approved only once regulators are convinced that the asset doesn’t expose investors to unnecessary risk. As the recently rejected Winklevoss ETF application clearly showed, the U.S. Securities and Exchange Commission (SEC) is not convinced that crypto-backed funds are “uniquely resistant to manipulation.”

“We do think that a product is coming soon,” Hassan told Bloomberg. “Perhaps, in the next 18 months, we’ll see a Bitcoin-only ETF.

Hassan, who runs Crescent Crypto, spoke at length about the potential for bitcoin and other crypto funds to revolutionize asset management strategies. He also said that passive investment strategies in crypto will “actually increase the participation in the market.”

The long-awaited bitcoin ETF has been described as the ‘holy grail’ for its potential to lure passive investors and traditional asset managers to the cryptocurrency market. Hopes for its imminent arrival helped spur a nearly 30% rally in bitcoin’s price last month.

Some analysts believe that a joint proposal submitted in June by VanEck and SolidX has the best chance of gaining regulatory approval. The SEC could rule on the fund as early as Aug. 16, though many believe the process will drag on for several months.

Hassan’s Crescent Crypto fund invests in 20 high-profile digital assets that meet specific requirements tied to market capitalization, liquidity and security.

According to the company’s third-quarter report, cryptocurrencies are broken down into four brackets or “sectors,” including: store of value, platform, value transfer and anonymity. Bitcoin, a “store of value” currency, accounts for nearly 45% of the portfolio. “Platform” Ethereum is second at 19.3%. They arefollowed by Ripple and bitcoin cash (“value transfers”) and EOS (“platform”).

For “anonymity,” the fund includes Monero, Dash and Zcash.

Debate Continues

A debate over bitcoin and crypto-backed securities is being waged within the SEC’s own ranks, underscoring a gradual shift in how regulators approach the subject.

Last week, SEC Commissioner Hester Peirce formally dissented to the regulator’s ruling on the Winklevoss ETF. In a lengthy statement published on the SEC website, Peirce said:

“I am concerned that the Commission’s approach undermines investor protection by precluding greater institutionalization of the bitcoin market. More institutional participation would ameliorate many of the Commission’s concerns with the bitcoin market that underlie its disapproval order. More generally, the Commission’s interpretation and application of the statutory standard sends a strong signal that innovation is unwelcome in our markets, a signal that may have effects far beyond the fate of bitcoin ETPs.”

On Thursday, Hacked commented on a transcript that described a “heated debate” on cryptocurrency between SEC Chairman Jay Clayton and an unnamed attorney. According to Eric Werner, an associate director of enforcement with the SEC, Clayton is giving the cryptocurrency debate “the same dedication and thought process” as every other issue he has faced throughout his tenure as agency chief.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 661 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Bitcoin Price Edges Higher After Mild Weekend Rollover

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Bitcoin’s price notched modest gains on Monday, as markets maintained their support of a key technical threshold, which has kept the bears at bay for the time being.

BTC/USD Update

The bitcoin price notched intraday highs of $6,481 on Bitfinex, setting the stage for a bigger breakout in the short term. At the time of writing, BTC was valued at $6,452, where it was up only slightly on the day.

The leading digital currency briefly fell below $6,300 on Sunday, which threatened further downside exposure. Prices would quickly return above $6,300 before making a more sustained rally on Monday. The rebound puts the bulls on high alert for a possible re-test of the $6,500 threshold. Above that level, the market is likely to run into strong resistance near $6,600, which represents the upper portion of last week’s rally.

Looking at the 4-hour chart, momentum is gradually returning to the BTC trade, with the relative strength index (RSI) back above 50. However, the MACD clearly shows that the sellers are still in control.

Bitcoin’s daily trade volume is one of the more promising signs that a potential recovery is afoot. Turnover has risen more than 13% over the last 24 hours to reach $4.3 billion, according to CoinMarketCap. As Hacked previously noted, daily trade volumes of $4 billion or more are needed to support a sustained rally.

At current values, BTC has a total value of $111.3 billion for a 52.2% share of the total cryptocurrency market.

Actual Volumes Higher?

It’s important to keep in mind that data on trade volumes only capture the amount of money being traded on digital currency exchanges. The actual turnover when factoring over-the-counter markets could be twice as high as what’s reported by CoinMarketCap, according to Binance CEO Changpeng Zhao. If the OTC market is roughly the same size as the virtual exchange market, then we can assume that daily trade volume has averaged well over $20 billion this month.

“What I’ve heard is the OTC market is at least as large as the live recorded volumes,” Zhao said, as quoted by CCN. “So that is at least 50 percent of volumes that is not being reported on CoinMarketCap. But we’re not heading to that business, so we don’t know the real volumes.”

Trading activity is expected to increase manifold once institutional investors begin accessing cryptocurrencies on a larger scale. The launch of bitcoin futures last December has had a stabilizing effect on the market and it is believed that a crypto-backed exchange-traded fund (ETF) could open the door to much wider demand. The U.S. Securities and Exchange Commission (SEC) has so far rejected all bitcoin ETF applications but is said to be closely evaluating a joint proposal by VanEck and SolidX to list a physically-backed BTC fund.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 661 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Bitcoin, Ethereum, Ripple: Zero Visibility in the Market

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  • The BTC/USD is pointing to a slight upside but has strong obstacles.
  • The ETH/USD has a simpler scenario but doesn’t seem determined to take advantage of it.
  • The XRP/USD also doesn’t want to take advantage of a positive scenario for climbs.

This week in the crypto market starts with an opposite scenario to the one we had last week. This week, very short-term indicators are pointing up. The medium-term situation continues to show a structure that proposes laterality for the next few days.

If the upward movement that comes out of the very short-term technical analysis takes place, we will have to be attentive to the duration and intensity in case it can sufficiently influence the medium term structure.

BTC/USD 240-Min

The BTC/USD is currently trading at the $6.357 price level. This leaves Bitcoin below the first resistance of the range at $6,359.3. Moving averages continue their convergence process, creating a significant barrier that the BTC/USD will have to overcome if it wants to re-make higher prices.

Above the current price, the first resistance is at the quoted level of $6.359 (price congestion resistance). The second level of resistance is precisely the convergence point of the 100-period Simple Moving Average at the price level of $6,367, 200-periods at $6,366 and the 50-period Exponential Moving Average slightly higher at $6,375.

It will not be easy for Bitcoin to overcome this obstacle. If it does, the prize will be almost none, because it is not until the next resistance level of $6,491 (resistance due to price congestion) that the conditions of a new bullish trend would start.

Below the current price, the first support at the price level of $6.295 (price congestion support). Second support level at $6,208 (price congestion support). The loss of this second level of support would open a much more negative scenario that could bring the value of the BTC/USD to $5,874 (price congestion support).

The MACD at 240-Minutes pointing up but below the zero line. The current structure proposes attempts to move up although they can be limited. Until these lines are above the neutral line of the indicator, it will not be easy to move upwards.

The 240-Minute DMI shows how the bears continue to have control over the situation. The bulls are not giving up and took advantage of the $6,300 marked early in the Asian session to buy intensively.

ETH/USD 240-Min

The ETH/USD is currently trading at the $211.20 price level. Its technical aspect is more conducive to rises than that presented by the BTC/USD. This situation is because moving averages are below the current price and can help support the ETH/USD in case of sales appearing in the market.

Above the current price, the first resistance is at the price level of $215 (price congestion resistance). From here it will be easy for the ETH/USD to face the second resistance at the price level of $223.24 (price congestion resistance). However, until Ethereum exceeds the third resistance at the $235.76 price level, it will not enter a fully bullish scenario in the short term.

Below the current price, the first support is at the $210 price level, which is where the 50 period Exponential Moving Average currently passes. The second support level is at $206.78 (price congestion support). This support is reinforced by the 100- and 200-Simple Moving Averages slightly below, around $205. The third level of support is at the psychological level of $200, a level that if lost would make the technical aspect of the ETH/USD much worse.

The MACD at 240-Minutes shows a neutral profile. The lines are overlapping and just above the average range of the indicator. In this situation, it does not provide information with which to project future movements.

The 240-Minute DMI shows Bears with a small advantage over the Bulls. Both sides of the market maintain good levels, and neither gives up. It is worth highlighting the bullish trajectory of the Bears since the lows of November 7, betting clearly to see new annual lows in the ETH/USD.

XRP/USD 240-Min

The XRP/USD is currently trading at the $0.506 price level, just above the first support level at $0.504 (price congestion support). The moving averages in the case of the Ripple are well below the current price.

Above the current price, the first resistance level is at the price level of $0.547 (price congestion resistance). The second resistance is at $0.584 (price congestion resistance) and the third resistance at $0.60 (price congestion resistance). The XRP/USD will not fully re-enter the bullish phase until it exceeds the relative maximum above the $0.768 price level.

Below the current price, the first support is at the price level of $0.50 (50 Period Exponential Moving Average). The second support is at $0.48 (Simple Moving Average of 100 periods), a little above the trend line that governs the movement and is at the price level of $0.465. The second support is at $0.48 (Simple Moving Average of 100 periods), a little above the trend line that governs the movement and is at the price level of $0.465. Losing this support level would be very harmful.

The MACD at 240-Minutes shows a flat profile, just above the neutral line of the indicator. It does not provide any information about the possible future evolution of the Ripple.

The 240-Minute DMI is also not going to help us in proposing future scenarios. Absolute tie between bears and bulls. This situation of equilibrium has been going on since last November 9th.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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Bitcoin Price Consolidates as VanEck Shines Spotlight Back on ETF Debate

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Bitcoin started off the weekend on a tepid note, as trade volumes fell sharply amid a dearth of fresh trading catalysts. The debate over bitcoin exchange-traded funds (ETFs) intensified after a senior manager at VanEck touted the potential of the new asset class.

BTC/USD Update

Bitcoin traded within a narrow range on Saturday, with a peak-to-trough spread of only $55, according to Bitfinex data. The leading digital currency by market capitalization was last seen trading at $6,450, up 0.5% on the day.

The bitcoin price experienced a bullish revival earlier in the week, but that quickly dissipated as markets pulled back from oversold levels. BTC peaked near three-week highs on Wednesday before the bulls slammed on the breaks, sending prices back to the low $6,400 region.

In the last 24 hours, trade volumes have dropped by roughly 15% to $3.8 billion, according to CoinMarketCap. Daily turnover reached $3.9 billion on Saturday.

At current prices, bitcoin has a total market capitalization of $111.2 billion, which represents 52.3% of the entire cryptocurrency market. The total market cap for all coins in circulation reached $212.9 billion on Saturday.

Bitcoin ETF Approval Likely: VanEck

The U.S. Securities Exchange Commission (SEC) should treat bitcoin ETF proposals as an opportunity to regulate the cryptocurrency market and make the asset class more resistant to manipulation, according to Gabor Gurbacs, VanEck’s Director of Digital Asset Strategy.

In a recent interview with CNBC Crypto Trader, Gurbacs said the fund being developed by VanEck addresses all of the reservations federal regulators have with crypto securitization. He explained: “What sets our ETF apart is that it’s a physical bitcoin ETF. So, it stays true to the bitcoin you own in underlying. It’s fully insured so if there is any theft, hacks or losses; then the insurance covers it.”

In terms of how the ETF will be priced, Gurbacs said the asset will rely on a fully regulated indexing subsidiary. Given that the ETF is geared toward institutional investors, it has a cap of 25 bitcoins per basket.

Earlier this year, VanEck and SolidX proposed a physically-backed bitcoin ETF that many in the crypto community felt stood the best chance of being approved by regulators. While the SEC has rejected all applications thus far, Gurbacs said VanEck’s physically-backed fund is close to being approved. The agency is set to deliver a verdict on Dec. 29, though many believe it will be delayed until February.

Gurbacs is confident the VanEck ETF will be approved because the fund manager is building the right market structure for digital assets, which is in line with the corporate strategy stretching back decades.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 661 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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