Coinedict reported on the 9th August about the market’s reaction to the SEC extending its ruling on the ETF. Twitter user Jake Chervinksy tweeted about the frustration he experienced considering that the SEC decision relating to the Bitcoin ETF had been further pushed back until February 21st, 2019.
Many specialists and experts in the field have since chimed in about the reaction the market is expected to face owing to the SEC’s decision regarding Bitcoin ETF, stating that this is likely to heighten the volatility experienced by the market.
Brian Kelly, who is a CNBC Fast Money contributor along with being the founder and CEO of BKCM LLC, predicted “A little spoiler alert, on September 30, SEC will likely postpone it again, because the market is not ready for it and the SEC hasn’t had the answers to their questions yet.”
According to Kelly, the rejection of the Winklevoss Twins’ Bitcoin ETF by SEC led to the market reaction of a considerable drop in the price of the BTC.
He states, “Everybody is so excited about ETFs. What we have seen in other markets is that when an ETF becomes available, the price really increases dramatically, as suddenly that commodity becomes available to a lot more investors and these investors pile on. But, the other side of it is that there are always these claims that the commodities markets are heavily manipulated and opening up these ETFs only increase the ability of institutional investors to manipulate the prices of commodities.”
Antonopoulos’s views echoed that even though ETF’s are likely to make the Bitcoin market accessible to a large group of institutional investors and retailer traders, it is also on the other hand likely to make the price of BTC more vulnerable to be manipulated by the same investors. Say that a group of investors decided to make gains within the futures market, they would have the ability to utilise the ETF market to manipulate prices, making the Bitcoin market considerably volatile. Prominent investors who possess the ability to reverse market trends could easily leverage the instability, volatility, rapid growth and publicly tradable investment vehicles.