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Bitcoin ETFs Can Still Come to Life

An ongoing source of frustration for many members of the U.S. cryptocurrency and exchange traded fund (ETF) communities is the lack of a bitcoin ETF. The Securities and Exchange Commission (SEC) has continuously blocked efforts from the ETF community to bring products based on the largest digital currency to market, but some market observers believe a bitcoin ETF can still become a reality.

“I would have thought we were not going to see anything here in 2018 on bitcoin ETPs, but if [the SEC] is out there asking for some comments around the ProShares filing, they are not wasting time, I know that,” said Amplify ETFs CEO Christian Magoon in an interview with WealthManagement.com.

Earlier this year, Amplify introduced the Amplify Transformational Data Sharing ETF (BLOK), an actively managed ETF dedicated to companies with exposure to blockchain technology. BLOK, which is almost four months old, has over $177 million in assets under management, a decent figure for an ETF of that age.

Regulatory Issues

Many ETF issuers expected the launch of bitcoin futures, which debuted on two U.S. exchanges in December, would help facilitate the debut of ETFs related to the cryptocurrency. Following the launch of bitcoin futures on Cboe and CME, a slew of ETF sponsors reapplied to launch bitcoin funds, but were still rebuffed by the SEC.

While the Securities and Exchange Commission (SEC) opened a comment period on bitcoin ETFs in early January, soon thereafter the commission told ETF sponsors to withdraw their applications for funds related to the largest cryptocurrency.

“But, maybe they are getting a little bit more serious. Maybe it’s because the market has cooled off in terms of cryptos. That would be a big coup for ProShares, and, of course, they’re not a stranger to controversy given all of their inverse and leverage products,” said Magoon. “My guess is their user base is pretty hedge fund-y, trader-y, and would probably love bitcoin and exchange traded products (ETPs).”

Recently, the SEC said it is evaluating whether or not to let ProShares, a major issuer of ETFs, list the ProShares Bitcoin ETF and the ProShares Short ETF. ProShares orignally filed plans for those products in September.

Assuming a bitcoin ETF or ETFs come to market in the U.S., that could significantly increase investor adoption of the digital currency because while many investors have signaled interest in digital assets, they are reluctant to buy and hold alt-coins over exchanges and in digital wallets. The ETF wrapper would ameliorate those problems.

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Bitcoin

Bitcoin Price Hits 8-Month High Close to $7K

There seems to be no stopping the bitcoin (BTC) freight train.

The leading cryptocurrency by market value jumped to $6,964 at 06:00 UTC today on Bitstamp, the highest level since Sept. 5, 2018, having found acceptance above the crucial 200-week moving average at $6,500 in early Asian trading hours.

Prices have set a new multi-month high for the fourth straight day and have rallied in excess of over 70 percent in the last 5.5-weeks.

Notably, with the sharp rally, the 100-day MA of bitcoin’s price has moved above the 200-day MA. That is the first bullish crossover between the two averages since July 2015.

The development further confirms the long-term bearish-to-bullish trend change signaled by several technical indicators, including a golden crossover, over the last few weeks.

The moving average studies, however, are lagging indicators and have limited predictive abilities, as they take old price history into account.

Even so, investors may take heart as a similar crossover in July 2015 was followed by a 2.5-year bull run.

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Binance

Binance got hacked for $40 Million Dollars in Bitcoin, is your money safe?

The short answer is Yes, your money is safe.
Fortunately, Binance was prepared and your money is safe in due to SAFU. Meaning the ‘Secure Asset Fund for Users’ will cover this completely. This is the very reason Binance is self-insured.

Technically speaking the Binance exchange itself was not hacked, it has officially been stated by Binance that a large number of API Keys, 2FA Codes, and other user info was acquired by said hackers utilizing techniques such as phishing, viruses and other types of digital attacks. This means that it was user accounts that were compromised by the users themselves and not Binance.

In an age where digital security is more important than ever, this is a stark reminder to keep your data safe and secure at all times.

TLDR About the Binance Hack:

• 7000 BTC was stolen
• The BTC was stolen from Binance’s Hot Wallet
• Binance’s Hot Wallet holds only 2% of their total holdings
• All funds are insured and do not affect users

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Bitcoin

Why Is Bitcoin Not Taking Off In 2019?

PEAK BITCOIN

As you are likely referring to the price, Bitcoin is quite frankly doing what it has always done, as in go through a cycle. Right now it appears to be in the accumulation phase before it starts to climb and then vault higher than it was before.

If you take a look at this Bitcoin chart and go back to what happened in the run up to late 2013, it extremely similar to 2017, and then what happened directly after in 2014, 2015 and 2018, 2019 is quite similar.

 

We can see from the chart that there was a prior accumulation phase happening throughout 2015 and 2016 after the drop in 2014 subsequent to the spike in 2013. But this is dwarfed by the spike that happened in late 2017.

The other point to note is that Bitcoin is not unique when it comes to this cycle, it has happened before in many different markets. It’s just that Bitcoin is a new technology phenomenon that is following a very similar path. Of course we can never be certain as to how long the current phase will last, but when it’s done I suspect a lot of people will look back once again and wish they had accumulated during this phase.

Finally, whether it still has further to drop or not won’t really have any substantive bearing on the ultimate long term trajectory in our honest opinion.

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