On the first day of October, the cryptocurrency market made its presence known by showing significant increases. Bitcoin is up almost 10 percent today, while ethereum is up about 8 percent and bitcoin cash is up 7 percent.
Cryptocurrencies did not do well in September, which could be part of the seasonality in this market. On a monthly basis, BCH fell by about 15 percent, ripple by about 14 percent, ETH by more than 6 percent, and LTC by almost 5 percent. As for bitcoin, it has lost value 7 out of 9 times in consecutive September months since 2013. In October, on the other hand, the statistics for the cryptocurrency market and BTC seem to be looking much more favorable. Since 2013. BTC has gained in value 6 times. The range of fluctuations in this month between 2013 and 2020 was from -12 percent in 2014 to +60.79 percent in 2013. By contrast, October's return in 2020 was 27.7 percent and in 2019. 10.17 percent, according to data from bybt.com. The current gains at the beginning of the month may therefore put the crypto market on a good streak that seemed to have taken place in previous years.
ETF on BTC coming soon?
One of the most important questions seems to be whether, and if so, when, the SEC will allow the launch of the first ETF based on the crypto market in the US. The regulations that the Commission is working on seem to favor such a fund being created, following in the footsteps of Arab countries, South America or Canada, where such ETFs operate. Nevertheless, according to the latest SEC decision, we will wait for 45 more days for information on this topic.
As the Commission announced on Friday, the deadline for making a decision on accepting applications for the creation of 4 ETFs on BTC: Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust and Cryptoin Bitcoin ETF - has been postponed to November 21, December 8, December 11 and December 24, respectively. The SEC's argument can be read: The Commission believes it is appropriate to set a longer period to take action on the proposed rule change and any comments.
Will ETFs open the door to massive capital?
Why is a cryptocurrency ETF in the US eagerly anticipated? Well, data from a company that issues ETFs called iShares shows that the total value of the units is around $500 billion. According to analysts at Bloomberg, one of the first Bitcoin ETFs could be an ETF from ProShares, but there could be several companies involved at once so as not to favor any one of them. If this were to happen before the end of 2021 or the turn of the year, the temperature in the cryptocurrency market could rise significantly during this period.
Daniel Kostecki, Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.31% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trade this news from Conotoxia Ltd. platforms
Go to your account
