Cryptocurrency Bullish Trend Might Not Restart Until the Launch of Crypto-ETFs: Bitcoin along with other major cryptocurrencies erased almost all their recent gains on Wednesday, showing that the bull market is not yet strong enough to stay.
The market players are eagerly waiting for a catalyst to restart the bullish trend. But they may have to wait until the key support levels are tested, and major fundamental news is announced, perhaps by the end of this quarter.
One thing investors are looking forward to is the launch of cryptocurrency exchange-traded funds (ETFs). Back in January, the Securities and Exchange Commission (SEC) turned down plans by members of two Wall Street trade groups to set up ETFs for bitcoin and other cryptocurrencies. Right now, the closest thing we have to an ETF is Coinbase Index which tracks the overall performance of the digital assets listed on Coinbase’s Exchange, GDAX.
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But the movement to launch crypto-based ETFs is still alive as several companies are lobbying regulatory agencies or introducing similar products in OTC markets. Even the CBOE is calling for a Bitcoin ETFs, as shown by its recent letter to the SEC.
Some skeptics believe that an ETF for cryptocurrencies will never work. But if it does, it sure could help investors regain their confidence in the digital asset market and push the prices back up.
Bitcoin ended Wednesday’s trading session back below the $7,000 mark. We still can expect it to reach at least $6,000 before the next uptrend starts.