Canaccord predicts that the SEC will not decide on current ETF applications this year, and will exercise its right to postpone the decision to 2019 next year.
The falling spread or difference between the total market capitalization of all cryptocurrencies except bitcoin and BTC's market capitalization is also signaling reduced demand for high-risk alternative cryptocurrencies.
Many in the cryptocurrency community believe that a Bitcoin ETF is the next logical step in the evolution of the market.
While the well-respected technician did not give a clear price prediction for the price of Bitcoin, it has become apparent that the asset looks more bearish than it does bullish. The delay discouraged Bitcoin traders and triggered massive sell-off, intensified by the breakthrough below technically essential levels.
But the idea of an ETF is not ruled out and, though its having one of its worse days in recent months, Bitcoin lives to see another day. Some tokens with more than $1 billion in value, such as IOTA and EOS, lost more than 15%.More news: 2 equine cases of West Nile Virus confirmed in Montana
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And there is hope that a bitcoin exchange-traded fund (ETF) could come to market this year despite the SEC rejecting a second attempt by Cameron and Tyler Winklevoss, founders of crypto exchange Gemini, to introduce one. The CEO went on to add that Bitcoin could be set to see a longer-term growth figure, as a result of the NYSE's parent company launching a brand new cryptocurrency platform. People get really excited about the price and overreact, I think, to announcements.
On Wednesday, the Securities and Exchange Commission chose to delay its decision regarding the proposed Bitcoin exchange-traded fund by VanEck and Solid X. He then suggested that Bitcoin "needs to be done as hedge funds first" since it is an "early-stage venture-type security or asset". However, there are also other Bitcoin ETF applications submitted to the agency.
"Currently, experts are split on the role bitcoin ETFs" approval plays in the long-term success of bitcoin. "The former is better for pumping price, but the latter is much better for actual adoption".
Several players have applied or are understood to be in the process of applying for permission to launch Bitcoin ETF, which would, in theory, make investing in cryptocurrency much more accessible to retail investors who could simply buy into the ETF.
But of course, we still don't actually know when is this going to happen.