By Bogdan Giulvezan
First Bitcoin ETF to Launch Before End of 2020
For a long time now, Bitcoin advocates and cryptocurrency proponents in general, have been asking the question: When will a Bitcoin ETF finally emerge? It looks like we are on the brink of such a development but its launch will not come from where we would expect.
Regulated Brazilian fund managing firm Hashdex, in partnership with NASDAQ, will launch the world’s first crypto ETF (exchange-traded fund) on the Bermuda Stock Exchange (BSX). The ETF is called Hashdex Nasdaq Crypto Index and was approved on September 18. BSX announced that 3 million shares (Class E) will be issued for trading. According to reports, the ETF will be available to trade before the end of 2020.
Thus far, all attempts to launch crypto ETFs in the United States were unsuccessful, because either the applicants pulled them or the U.S. Securities and Exchange Commission (SEC) rejected them. The main rejection reason was the applicants’ failure to offer solid evidence that Bitcoin (and crypto in general) can resist price manipulation.
Despite these failed attempts to bring a Bitcoin ETF to the United States, Raoul Pal who is a well-known fund manager and former Goldman Sachs executive, still believes that such an ETF will be coming to the U.S. in the near future. His prediction is rather confident, as he recently had this to say: “I’m going to give you the biggest front-running opportunity of your life: they will get an ETF across the line. There will be billions of dollars that pour into it. Every pension plan will allocate some money to it. Every family office will allocate some money to it. And the more the price goes up, the more they will allocate.”
The Technical Scene
Bitcoin is currently trading around $10,700 but as we can see from the chart below, it is very “tame” and lacks the strength to break the resistance at $11,150. However, every time it goes into the zone between $10,000 and $10,250, it becomes appealing to buyers, and demand increases along with price.
It is very possible for Bitcoin to remain in a relatively tight range for a few more days but we can expect to see strong movement once an important level is broken. In other words, keep an eye on $11,150 because a clean break will likely take price into $12,000 territory, but also pay attention to the $10,000 psychological/technical level because a break may generate a drop into $9,000.
The MACD is almost flat and doesn’t indicate a clear direction, while the Stochastic is trading in the middle of its range, thus all these indicators are doing right now is supporting the idea that the pair lacks clear momentum. Wait for a clear break or apply trading strategies suited to range-bound markets.