The SEC has been considering Bitcoin ETFs for quite some time. Years in the making, we believe next week this important milestone will be reached. Also, Coinbase is looking into the NFT market!
SEC on Twitter
After much debate, and months of mixed signals from the Securities and Exchange Committee, the SEC directly mentions a warning about investing in Bitcoin. This warning holds a bit of a hint, “Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits”[1]. This quote is directly from SEC investor education on twitter. It is not often (or ever) that the SEC openly discusses the terms “investing” and “Bitcoin” in the same sentence. This stacked with the fact that Gary Gensler, the Chair of the SEC, has said on numerous occasions he is a fan of a Bitcoin Futures ETF.
Although not as great a product as a spot ETF with real Bitcoin exposure, futures are the next best thing. This is a significant step forward in mainstream and institutional adoption of Bitcoin and cryptocurrency. The news has brought BTC to a 24 hour high of almost 63,000$. A prevailing theme here at CoinBusters has been that the market data (on-chain) has indicated a massive uptick in usage and adoption, and then, all of a sudden, all of the FUD seems to disappear (very suspicious). Crypto enthusiasts have been hoping for and hearing about a Bitcoin ETF in America for years. Both Canada and Brazil already offer Bitcoin ETFs and they have been very popular on their individual markets. But wait… there is more bullish news!
Coinbase Enters the NFT Market
Coinbase is one of the most influential platforms in the world of crypto. CoinBase has done wonders in bringing mass adoption to crypto in a user-friendly way. Coinbase offers a normal application and a Pro version for more involved traders. It went public a few months ago on the stock market and in doing so, CoinBase began a domino effect. When Coinbase gets involved, things move, and to the upside. With the recent NFT craze ongoing, Coinbase announced they are creating their own NFT marketplace[2]. We know it will be user friendly, and many marketplaces currently are not easy to use. In June, the main NFT marketplace, OpenSea, received a 1.5Billion Dollar valuation. With estimations of only 60,000 unique wallets using NFTs this is a potentially massive market. Much like Coinbase collects trading fees, OpenSea collects fees on buying and selling of NFTs. Coinbase is offering a waitlist for early access to the marketplace to get user feedback early and increase usability.
We believe these two catalysts will help the crypto market explode with gains. Mass adoption is coming and even the SEC is on board. We predict approval of a futures ETF before 10/19/21 and the price action of Bitcoin in the short term could go either way. Traders tend to buy the rumor and sell the news. We are approaching all time highs and we should technically see some resistance pushing past here. With the continued onslaught of bullish news across the market, we could also just blow right through the all-time high. I would personally rather see us build some market structure. When the market heats up too fast we see the massive market corrections we saw in the Spring. People can’t help but take profits. As always, stay safe out there and do your own research. This is just the beginning.
