Better times might just be around the corner for cryptocurrencies, with a key event in November expected to spark new price rises…
Bitcoin has had one of its better weeks of late, seeing its value slowly crawl into the low-to-mid $7000s, and actually stay there for a few days. This is all a far cry from just over nine months ago, when the currency was trading for just shy of $20,000. But then cryptocurrencies across the board have faced stories of fraud, hacking and regulatory pressures since then, and prices have been squeezed.
Yet according to some, happier days may be just around the corner. Whilst few expect the American Security & Exchange Commission (SEC) to rule in favour of granted a Bitcoin exchange traded fund (ETF) later this month – it’s rejected or deferred every other one, after all – it may be a move by the New York Stock Exchange’s parent company that gives crypto a shot in the arm.
Intercontinental Exchange (ICE) already revealed earlier this year that it’s launching the cryptocurrency platform Bakkt. But now, under that umbrella, it’s going to seize the proverbial initiative and add an ETF of its own, backed by Bitcoin.
It announced the move towards the end of last month, as you can see from the following Tweet…
With our solution the buying and selling of bitcoin is fully collateralized or pre-funded.
Our new daily bitcoin contract will not be traded on margin, use leverage or serve to create a paper claim on a real asset.
— Bakkt (@Bakkt) August 20, 2018
As that news has settled in, pundits are now predicting that its launch in early November will fuel a fresh spike in the price of Bitcoin. Whilst it’s not likely to hit the near-$20,000 price tag anytime soon, there’s genuine hope that the value of BTC can get near $10,000 by the winter.
Bakkt still needs to get a greenlight from the US Commodity Futures Trading Commission, but in this case, that’s likely to be a relatively straightforward hoop to jump.