The Coinbase execs believe that crypto can go mainstream, describing the current period as the next chapter for cryptocurrencies.
Executives at Coinbase Institutional are bullish on cryptocurrencies following the recent approval of Bitcoin exchange-traded funds (ETFs) from the United States Securities and Exchange Commission (SEC). According to the Head of Coinbase Institutional Brett Tejpaul and Head of Institutional Product Greg Tusar, this is the “mainstream” era of crypto.
Speaking in an interview, Tejpaul said:
“I think the most interesting bit that’s getting a little bit drowned out by some desire to have headlines is it’s the first time crypto can go mainstream.”
Tejpaul also expressed excitement at the current clime owing to the SEC’s approval. He added:
“And in all the years that Greg and I have been here trying to build the institutional business, this is like the very moment we’ve been waiting for. So, for us, it’s the next chapter of this asset class.”
Crypto ETFs and Volatility
Earlier this month, the SEC approved 11 spot Bitcoin ETFs after rejecting multiple proposals for 11 years. Since Cameron and Tyler Winklevoss’ Gemini Exchange submitted the first-ever proposal, the Commission has disapproved all applications for fears of fraud and market manipulation. However, a court ruling set the pace for approval after a judge concluded that the SEC’s disapproval of Grayscale’s proposal was an unfair application of the law.
While Bitcoin has not reacted as expected following the approvals, many forecasts are still bullish. For instance, CEO and founder of SkyBridge Capital Anthony Scaramucci predicted that Bitcoin will reach a new all-time high (ATH) this year. According to Scaramucci, Bitcoin will “see it’s all-time high before the end of the year and will likely go through it’s all-time high by this time next year.” Bitcoin hit its current ATH of $69,000 in November 2021.
Nevertheless, BTC recently plunged below $40,000 following heavy outflows recorded in the ETF market. Grayscale’s ETF lost more than $2 billion since the approval, causing a plunge in Bitcoin’s price. Much of the outflow is credited to defunct crypto exchange FTX’s bankruptcy estate withdrawing $1 billion worth of the ETF’s shares. The Grayscale ETF was converted from GBTC, a private fund for Bitcoin investments launched in 2013.
Bitcoin Expected to Plunge Further
The volatility caused liquidations in the Bitcoin market worth over $157 million. According to Coinglass data, the liquidations comprised $143 million in long positions and 422 million in short positions. However, in the short term, there are predictions of a continued pullback. BitMEX co-founder and former CEO Arthur Hayes has predicted a pullback to the $30,000 to $35,000 range. In a recent blog post he titled “Yellen or Talkin’?,” he explains that Bitcoin will dip to a local bottom at that range, before rising again.
According to data from CoinMarketCap, Bitcoin is trading at $40,056 as of this writing, after climbing a slight 0.21% in the last 24 hours. However, it has recorded a nearly 7% plunge in 7 days.
Altcoins also recorded plunges, with ETH and SOL falling 135, while BNB lost 7% all within 7 days. Of the top 10 largest cryptocurrencies by market cap, the biggest plunge was Avalanche (AVAX), losing over 14% in the same period.