Popular cryptotriton and CEO of the investment company BKCM LLC Brian Kelly (Brian Kelly) said on the air, heading Fast Money CNBC: what is happening with the bitcoin – nothing like a rally, and cited three reasons behind it.
Recall that the growth rate of the leading cryptocurrency yesterday saw bitcoin for the first time in two months failed to reach the mark of $8 000. Despite the fact that this figure is only 60% of the December price, the experts talked about the rally.
According to Brian Kelly, this is just the beginning.
Kelly noted that “the chances of exchange-traded funds (ETFs) in 2018 is relatively low.” However, “this does not stop speculation” — that’s the first significant factor in the current rally.
On 26 June, the Commission on securities and exchange Commission (SEC) has received an application for the registration of exchange-traded bitcoin Fund from the Cboe Global Markets, which partners on this initiative began SolidX and Van Eyck Investment. While this is not the first application that the company filed to launch a bitcoin ETF, there is some reason to believe that the chances of the exchange for the approval of the current application are now higher than ever. In particular, we are talking about what the bitcoin price (given its growth) and market capitalization is such that to ignore such an asset will not succeed. Another two arguments, the emergence of a growing number of decisions on custody storage and some progress in the issue of regulation, including the SEC’s statement that the top crypto-currencies are not securities.
The hype surrounding the ETF peaked last week: the SEC received many comments on behalf of cryptoendoliths — most of them, even the overly positive: users expressed considerable interest in starting funds.
The attitude of the institutions became more serious
“Judging by the calls I get, I can tell you that the people who looked down on bitcoin in December — they did not like the price, now come back and say: “Okay, this thing does not disappear, we need to understand that this is how the asset fits into our portfolio”,” said Kelly.
Many share a similar opinion. We talked about it and Mike Novogratz (Mike Novogratz), and Tom Lee (Tom Lee). Recently, the importance of the inflow of institutional money into the market, said Barry Silbert (Barry Silbert) of Digital Currency Group. He noted that the infrastructure for “big money” is already close to that, so that it can be regarded as established. Both experts stressed the importance of the decision on custody storage Coinbase, paving the way for institutional money.
In addition, according to some, the recent interest in bitcoin and cryptocurrencies began to show company BlackRock, the world’s largest asset Manager and ETF provider. As you know, the future new CEO of the new York investment Bank Goldman Sachs is also “passionate about bitcoin” and believes that it is necessary “to adapt to the current conditions.”
Although there is no universally accepted definition of the concept of WEB 3.0, and Kelly calls her “new, improved” Internet. As the expert explained, institutions are considering offering it as a decisive factor connecting existing ecosystems with the “new Internet”. Thus, the new technology would be a useful addition to their portfolios.
In addition to discussing the reasons for a potential rally, Studio guests, among whom were the Futures Now trader Tim Seymour (Tim Elvin), discussed the appreciation of the leading cryptocurrency.
Seymour noted that investors feel more comfortable buying bitcoin for $7 800 than $6 000. Moreover, they will be even more confident buying it for $10 000.
“The higher the bitcoin price, the more valuable it becomes,” agreed Kelly, in turn, comparing bitcoin to gold and other currencies.
We will remind, a month ago, Brian Kelly said that “to bury bitcoin is not in any case.”
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