Bitcoin is currently below $6,500. This downward slide has been triggered by the ETFs rejection and delay. However, Bitcoin doesn’t really need ETFs to reach new heights as it has been created with the idea to eliminate the need for middlemen like financial institutions. Also, crypto hedge fund also shares the overaction of investors due to their excitement for the price.
Bitcoin doesn’t need ETF
Bitcoin was trading above $8,000 just before entering the August month. This month has been on a constant downward slide for Bitcoin as prices fell down first $8k, then $7k and now below $6,500. The severe drop in Bitcoin has been triggered by the SEC’s rejection of Winklevoss brothers’ Bitcoin ETF and then the delay of Vaneck’s.
At the time of writing, world’s leading cryptocurrency has been trading at just above $6,300 level. Though the 24 hours loss is only 2.60 percent in comparison to yesterday’s 8 to 9 percent. With a market cap of $109 billion, bitcoin is currently managing the daily trading volume of $4.6 billion.
Back in 2009, Bitcoin was first created by Satoshi Nakamoto, with the idea,
“A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending.”
In its official whitepaper, Nakamoto also explains that “commerce on the Internet” is dependent on financial institutions that have the “inherent weakness” of the trust-based model. Bitcoin network was created with the purpose to eliminate the need for middlemen i.e. financial institutions. With this original idea, Bitcoin doesn’t need an ETF or even Wall Street to maintain value.
Investors are overreacting – Dan Morehead
Now, the manager of the crypto hedge fund Pantera Capital, Dan Morehead, is talking about the undue importance to Bitcoin ETF which might take years to get approved.
“I still think it will be quite a long time until an ETF is approved. The last asset class to be approved for ETF certification was copper, and copper has been on earth for 10,000 years.”
He further explains:
“The main thing to remember is that bitcoin is a very early-stage venture, but has real-time price feed — and that’s a unique thing. People get excited about the price and overreact.”
“The ETF rejection is the same story we’ve had for five years. The SEC has been very cautious with an ETF.”
However, he is excited about Bakkt, one of the good news of this week where the Nasdaq’s parent company International Exchange in partnership with Microsoft and Starbucks, which is planning a crypto project.
“That’s huge news. That is going to be a very profound impact over the next five or 10 years for the markets, and, to my mind, that’s what people should be focused on.”
Talking about the price, he said “It’s all perspective,” as it is maintaining the consistency and has been up about 82% higher year on year.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Having a background in writing, I worked on a wide array of industry topics and have recently entered the world of Blockchain and Cryptocurrency.