Crypto Rally Loses Steam as Wall Street Reviews the Merits of a Bitcoin ETF
Crypto markets were a mixed bag on Tuesday, as most of the top 20 coins headed for slight-to-moderate declines. There were a few notable exceptions, with the likes of Dash, NEO and Zcash flashing green. Meanwhile, the debate over a bitcoin exchange-traded fund (ETF) appears to be heating up on Wall Street, with one prominent adviser suggesting that regulatory approval is “virtually certain.”
The cryptocurrency market is down more than 2% from its recent high, as bitcoin and the major altcoins pivoted lower. The total market capitalization is currently valued at $120.6 billion, according to CoinMarketCap. Trade volumes have slipped below $20 billion after registering a 15% gain on Monday.
As Hacked recently reported, bitcoin’s price has run into strong resistance near $3,700. At last check, the leading digital currency was valued at $3,633.26, where it was down 0.8%.
The top alternative coins were also in the red, with Ethereum, XRP and Litecoin falling between 1.2% and 2.9%. Bitcoin cash, Tron and Stellar all dropped between 1.4% and 3.9%. Binance Coin, the market’s biggest trailblazer last week, declined 4.3% to $9.14.
On the opposite side of the ledger, several top coins reported gains through the early part of the day. EOS edged up 0.6% to $2.80, Dash climbed 3% to $82.16 and NEO traded 4.4% higher to reach $8.31. The privacy-focused Zcash appreciated 5.2% to reach $53.67.
Bitcoin ETF is “Virtually Certain”
It’s only a matter of time before the U.S. Securities and Exchange Commission (SEC) approves its first bitcoin ETF, according to Wall Street analyst Ric Edelman. In a recent interview with CNBC, Edelman said he is confident that at least one of the current proposals submitted by VanEck and Bitwise would satisfy the regulator’s demands.
“It’s virtually certain. The only question is when. And I don’t know how soon it will the happen; the SEC has several legitimate thoughtful concerns that the industry has to overcome, and I’m confident that they will, and eventually we will see a bitcoin ETF. And it’s at that stage that I will be much more comfortable recommending that ordinary investors participate,” Edelman said.
VanEck and its associates resubmitted their proposal to the SEC less than a week after they had pulled it due to the prolonged government shutdown. The re-submission kicks off a 240-day deadline that will allow the SEC more time to review the application.
The merits of crypto investing appear to be growing by the day. On Tuesday, Bloomberg reported that Morgan Creek Digital had secured $40 million in venture capital to invest in cryptocurrency on behalf of two pension plans located in Fairfax County, Virginia. Other investors include an insurance company, a university endowment and a private foundation.
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.
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