Quick FYI before diving into things: We’re compacting content for a couple weeks as we continue to build this baby out. You’ll find everything worth being dialed into here each morning.
What to expect: Monday through Thursday will contain the headliner and further links, with First Person Friyays bringing you into the weekend.
Like they say, bear markets are for building. Short term sacrifices for long term gains, the first of which should be ready for liftoff by early next week.
What The ETF
In the past 24 hours, there has been a HUGE change in sentiment shift due to new mumblings about the likelihood of a Bitcoin ETF being approved by the SEC. All roads lead to Rome, and all signs point to ZeroHedge for triggering what looks to be a major decoupling of the altcoin markets from Bitcoin’s price action.
Here’s the deal: Two sources tied to the SEC and CFTC anticipate two future announcements:
- Approval of a Bitcoin ETF and other ETF products (likely ETH)
- Substantive crypto regulations from both groups
Which brings us to our next question: when and why?
Assuming that the rumor ends up having legs, there are several drivers that could explain an ETF approval:
- Bitcoin futures markets. Regulators have monitored them for over half a year, and allegedly, “adoption of a ‘peer product’ is what the conversations have centered around.”
- Fewer bubble convos. Investors losing heaps of money is still a concern, though it’s believed to be less of an X Factor in the current environment.
As for when the approval could hit, source #2 has his sights on September – subject of course to any final measures regulators may want to impose for ICOs. Along with eradicating scams, ICO regulations are expected to curb the outflow of dollars beyond Uncle Sam’s jurisdiction.
Last evening, it appeared that folks were losing faith in everything except for BTC. After all, if the rumor has legs, there would be an expected Bitcoin Boom following the announcement.
In the past, that’s translated to altcoins taking the elevator down. So the recent decoupling could simply indicate that investors prefer betting on a Bitcoin ETF than remain parked in alts that could possibly get roundhouse kicked by the SEC.
But, this morning is a different story. As @notsofast aptly noted, Bitcoin is ripping face. That was leading to a net outflow in the altcoin markets up until the graveyard hours this morning when several coins began to move the needle.
Both groups are humming since the turn to Tuesday:
(1) Including Bitcoin:
- Market cap: $17.2B inflow
- Trading volume: $3.3B increase
(2) Excluding Bitcoin:
- Market cap: $7.7B inflow
- Trading volume: $2.1B increase
Subtracting #2 from #1 gives us Bitcoin figures:
- Market cap: $9.5B inflow
- Trading volume: $1.2B increase
The bottom line: Bitcoin is still king, but other markets are starting to wake up as well – time to keep your head on a swivel.