Over the past 24 hours, Bitcoin’s price has surged to more than $8,250, and bulls see it having far more room to run based on several factors.
These factors include:
- anticipations that the U.S. Securities and Exchange Commission could approve a Bitcoin ETF
- more institutions getting involved in the crypto space
- the Internet’s move from Web 1.0 to Web 3.0
Here, we’ll go over these factors.
Much ado about BTC ETF
Ever since the Winklevoss twins submitted an application to the SEC to start a Bitcoin ETF, market players have waited with bated breath for the regulatory body to approve one.
The SEC, however, has refused to give its blessing to such a vehicle for a variety of reasons.
These reasons include the many concerns it has about cryptos, such as hacking and theft concerns.
The last application the SEC received for the creation of a Bitcoin ETF came from the CBOE, which filed it on June 26. The SEC typically makes decisions within 45 days so the thought among many is a decision could be announced by Aug. 15.
As that date approaches, some observers think people are buying BTC in anticipation of an approval.
On Tuesday, July 24, the SEC announced that the decision to approve several other crypto-related ETFs would not come until Sept. 21. This does not include the CBOE’s application.
As that wrangling continues, some observers are saying about a Bitcoin ETF approval, “hold your horses.”
This includes CNBC’s Bob Pisani, who this week said that it is highly unlikely that the SEC will approve a Bitcoin ETF this year. He noted the conversations he’s had with the SEC’s chair, Jay Clayton, in which Clayton was clear that the regulator was taking a “go slow” approach when it comes to the crypto space.
He said Monday:
“Clayton is not going to take the chance of being hauled before Congress and charged with letting moms and pops losing money on Bitcoin. Not in 2018.”
Here to stay
Since Bitcoin came on the scene in 2009, skeptics have warned that it was a fad, and that it would not survive. This was the stance of many, even as the price soared to almost $20,000 in December.
However, Bitcoin is proving that it has staying power, and institutions are becoming more interested.
Bitcoin guru Brian Kelly weighed in about institutions getting serious about the crypto space.
The founder and CEO of BKCM, an investment firm focused on digital currencies, said he’s getting calls from institutional investors who looked at Bitcoin in December and didn’t like the price.
He said now they are coming back and saying;
“This thing is not going away. We need to understand what it is. Where does this asset class fit into our portfolio?”
Kelly also pointed out that over the weekend, reports surfaced that Coinbase may have secured a $20 billion hedge fund for their custody service.
The Web 3.0 draw
Institutional players are excited about what is called Web 3.0, which Kelly said is here. This is simply another version of the web. Prior to Web 3.0 were Web 1.0 and Web 2.0. Since the inception of Web 1.0, the internet has gone from being a database, or global library of sorts, to a databank.
Kelly pointed to Alphabet (NASDAQ:GOOGL), Google’s parent company, and the record $31 billion in earnings it posted for its second quarter. He noted that those earnings didn’t come from it just selling ads. It was also due to the data it sells and monetizes via ads.
This is due to Web 3.0. Kelly said:
“Web 3.0 is the new internet; the improved internet where that data can be monetized. And how do you send something of value across an open network like the internet? With a cryptocurrency. And that is exactly why institutions are starting to get into this. They are seeing how this fits into a portfolio of Web 3.0 stocks.”
This article appeared first on Cryptovest
