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An ETF is Unlikely | According to Brian Kelly the SEC Won’t Approve It in 2018

ETF is Unlikely: Demand is growing for the establishment of a crypto ETF or exchange-traded fund. Just yesterday major exchange Bitwise joined the fight and filed a proposal to the SEC for an ETF.

But despite the desire for an ETF, Brian Kelly – CEO of BKCM; an independent investment firm specializing in cryptocurrency and blockchain-focused investment opportunities has expressed his opinion that it might not be possible in 2018. 

Kelly has suggested that the establishment of the first Bitcoin ETF will be tough to get approved by the U.S. Securities and Exchange Commission (SEC) in the current year.
In an interview with CNBC, the economics expert stated:

“I also hope there is an ETF. But I think the chances of a bitcoin ETF in 2018 are relatively low. There is still quite a few things. That doesn’t stop speculation on that. That’s one reason why we’ve seen this bottoming process here from $5,800 to $8,500.”

And his opinion is mirrored elsewhere too, as Bob Pisani, a CNBC business expert, also suggested that the higher authorities of SEC are unwilling to pass a proposal for a Bitcoin ETF any time soon. He hinted that the authorities are taking a “go slow” approach towards the establishment of a bitcoin ETF.

ETF is Unlikely – Why Are the SEC Moving Slowly?

The SEC’s reasoning is that the coin still has many unresolved concerns that affect an ETF being established. The body needs more time to asses these concerns which, more specifically, surround security and transparency.

It announced that it would “designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change.”

And further comments from the SEC regarding this decision have been postponed until September 21.

But an ETF Could Change Everything:

Demand is there for an ETF as it would create massive growth in the crypto-space; investors around the globe would be encouraged to invest into crypto as security and stability in the market would be far more reliable. A surge of investment would result in a sudden surge in the value of Bitcoin and other cryptocurrencies and eventually could make the cryptocurrency market a major contributing factor in the global economy.

Already, mere speculation regarding ETF’s has caused effects on Bitcoin Price, imagine what might happen if it gets approved.

2019 perhaps?

Featured Image: Deposit Photos/Melpomene

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Crypto Second Half of 2018

Crypto Second Half of 2018: Investors were not pleased with the first half of 2018. While some focused on the S&P 500 (it’s up 1% YTD, instead of the usual 3.5%), others focused on cryptocurrencies.

In particular, investors watched Bitcoin, which notched up a 16- fold increase in 2017, only to drop by 55% between the start of 2018 and June 27th. 

Now, as of July 1, we are in the second half of 2018. Which means if things are going to change, now is the time to get going. But what if things change for the worse? Some speculate this might happen in the cryptocurrency industry. 

Crypto Second Half of 2018: Placing Bets 

A number of predictions have been made for crypto in the second half of 2018. From more regulation to more comments from Wall Street veterans, there is a lot of stuff up in the air about crypto Q2 2018. 

In this article, we’ll look at 3 specific crypto second half of 2018 predictions.

1: More Crypto Regulation 

Crypto regulation has been discussed on multiple occasions, and even though progress has been made, more needs to be done.

As a result, we should expect to see the Department of Justice (DOJ) increase its crackdown on illegal activity. 

2: More Guidance from the SEC

Moreover, the SEC is expected to provide more guidance on initial coin offerings (ICOs). This is important, as ICOs continue to garner more mainstream attention.

The reason we need more information is that many remain unclear about ICOs. Are they revolutionary, like some have said? Or, are they just another Ponzi Scheme, which has also been claimed? 

Others expect the SEC to answer the burning question of whether all ICOs are classified as securities in the second half of the year. If the SEC makes this announcement, we should expect to see fundraising slow down considerably.

>> Difference Between an ICO and a Cryptocurrency  

3: More Adoption on Wall Street 

In order for there to be wider Wall Street adoption of cryptocurrencies, the first two predictions on this list need to come true.

Large financial institutions will continue to stay away from cryptocurrencies and ICOs until the SEC clearly communicates its rulings on digital currencies. 

Take the example of Coinbase and Ripple (XRP). Sure, it makes sense for Ripple (XRP) to be listed on Coinbase, but the crypto startup has said publicly that it will never list XRP until the SEC has made its decision on the virtual currency. 

Additionally, regulators need to show that they can remove the criminal activity from the crypto industry. If these requirements are met, more traditional financial firms will enter the crypto space. 

>> Financial Institutions Already Involved in Crypto

Crypto Second Half of 2018: The Takeaway

Continued market volatility is also expected for the crypto industry, but this seems like a given. After all, even the most successful of stocks experience volatility from time to time. 

Do you have any more predictions for crypto? We’d love to hear them! Let us know in the comments below. 

Featured Image: Depositphotos/Konstantinp

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Are Bitcoin and Ethereum Playing You Dirty? – Crypto Currency News

There has been a criminal probe into the possibility of crypto price manipulation by the traders of Bitcoin and Ethereum opened up by the United States. It has been reported that the Department of Justice is looking into activity surrounding these two cryptocurrencies. Commodity Futures Trading Commission and other federal prosecutors will look into the evidence to see if any traders in these two markets have manipulated prices through spoofing or wash trading.

Crypto Price Manipulation?

As with anything that can be traded, cryptocurrency prices depend on many factors. One of these is the positive or negative feelings of the market and the individual investors making trades within it. While this sense of movement, and the potential of a particular crypto coin, can be hard to quantify, it is something that experienced investors pay close attention to.

Because the impact of those feelings, positive or negative, also have a significant effect on the marketplace and the tendencies of cryptocurrency investors to buy or sell their coins, these factors are crucial to the value of the crypto coins even if those factors are often hard to identify.

The very fact that those positive and negative feelings are elusive is what makes spoofing possible. Traders who want to manipulate a given market create illusions of optimism if they’re going to increase the valuation of a crypto coin, and create the illusion of pessimism when they want to drive the price down. To do this, the traders will generate orders without any intention of filling them. This tricks legitimate investors into buying or selling, and the price of the crypto coins suddenly are in jeopardy of being adjusted. Once the adjustment happens, the bogus traders then cancel their orders. Spoofing is the very reason that the US Department of Justice has opened an investigation into Bitcoin to determine if manipulation has occurred.

Wash trading is something that happens when a trader buys their own orders. This, once again, gives the appearance of trading activity that just isn’t happening. These trades are only used to manipulate markets and encourage other investors to buy, buy, and buy. In these types of trades, there is no market risk for the manipulator, who only stands to gain from his or her bogus activity.

The Securities and Exchange Commission started its investigation back in March. However, many companies involved in crypto, like tZero, which is a subsidiary of the Bitcoin-friendly Overstock.com, fell under the radar of this investigation, which begs one to wonder what good the inquiry will do. Soon after that began the United States and Canada started something called Operation Crypto Sweep, which is a joint effort to root out fraud in the world of crypto. But with the current state of affairs between these two nations getting sour by the hour, who knows if this will even have any impact.

What we do know is that with governments now getting involved in crypto one can see the possibility of centralized regulatory bodies coming into play with regulation. This would defeat the whole purpose of having a decentralized monetary system free of such regulation, and the possibility of a few ruining it all for the many could at this moment be happening. We will simply have to wait it out, and see where this all ends up.

Do you think there’s been crypto price manipulation?

>> The Top 15 Cryptocurrency Influencers of 2018

Featured image: CryptoCoinMastery

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