Bitcoin and the entire cryptocurrency market had undergone a heavy correction on Wednesday post-SEC’s extension of its ruling on CBOE Bitcoin ETF to the end of September. It seems that this news from SEC did not go well with the crypto community as many investors, including retail and institutional, were eagerly waiting for the arrival of Bitcoin ETF, which would have given new hope to the already ailing crypto markets.
Responding to the SEC news, Bitcoin has corrected by more than 10% while losing over $10 billion in market cap till now. While the correction in the altcoins has been even worse, the overall crypto market valuations have gone down by $30 billion. The latest correction is said to have taken the crypto market to its lowest in 2018.
As investors have reacted quite in a panicky way, founder of BK Capital Management and the regular contributor on CNBC Fast Money – Brian Kelly said investors who have been reacting to this news from the SEC are doing it wrong. Kelly also said that it was not the right move for Bitcoin investors to react so severely and that he doesn’t see Bitcoin ETFs getting approved anytime before the end of 2018. Kelly explained:
“It [bitcoin] has had a tremendous run off of $5,800, and that was all really because people thought there was going to be a bitcoin ETF. The SEC came out and postponed that decision. A little spoiler alert, on September 30, SEC will likely postpone in again, because the market is not ready for it and the SEC hasn’t had the answers to their questions yet.”
Moreover, Kelly also noted that as major digital currencies have been performing poorly in the last few days, Ethereum Classic has made some formidable northward movement against the U.S. Dollar or Bitcoin. The latest integration of Ethereum Classic by two major platforms, Coinbase and Robinhood, caused the altcoin to move 30% higher. Kelly also said:
“Ethereum classic has been up 30 percent over the last month. Really the driver of ethereum classic are two things: Coinbase and Robinhood. This is the first time the retail investors will kind of get a real easy way to get into ethereum classic. Coinbase added it to their institutional side, I believe over the next week or so, they’re going to be adding it to their retail side of the platform.”
In the past few months, ETC has received a lot of attention from businesses which are willing to develop infrastructure around the Ethereum derivative. It is expected that the latest clarification by the SEC due to the non-security nature of Ethereum could give a big boost in the price and value of ETC.
It has to be noted, Coinbase has currently added support for ETC on the Coinbase Pro platform and it will be available for trading to the Coinbase customers in the next 1-2 weeks.