The cryptocurrency market has been uneventful lately. Based on data from CoinMarketCap, the total market capitalization has been relatively stable and has moved within the $200 to $220 billion range since September 21, 2018.
However, not every crypto investor is happy with this period of relative market stability. Those who have invested in digital currencies before January’s crash are naturally hoping for the highly anticipated rally as it is the only way they can recoup their investments and, perhaps, even make some profit out of their digital holdings. What the market needs right now is a catalyst to start the ball rolling and, according to a blockchain investor, the ball could be in the U.S. Securities and Exchange Commission’s court at the moment.
SEC’s Approval of BTC ETF
Crypto experts have been predicting that a crypto market rally is inevitable. However, most of these predictions say that the rally might not happen so soon and will likely happen next year or a couple of years down the line. However, blockchain investor Oliver Isaacs says that the rally could happen sooner as long as the U.S. Securities and Exchange Commision approve a Bitcoin exchange-traded fund (ETF), according to Forbes.
Isaacs believes that Bitcoin ETF’s approval could be the major catalyst the market is looking for, saying:
“The approval of a Bitcoin ETF will open the floodgates for new investors to pour billions of dollars into cryptocurrencies with the same ease in which they invest in stocks and all other mainstream asset classes.”
Bitcoin Could Climb to $22,500
If the SEC would approve a Bitcoin ETF, it could also launch the largest cryptocurrency by market cap to new heights. Isaacs said that the situation now is similar to what happened to gold back in 2003.
“The precious metal increased more than 300% in its price in the aftermath of the first ETF approval back in March 2003.”
SEC’s approval of a Bitcoin ETF could have a similar effect on the crypto. Isaacs estimates that if this happens, Bitcoin could end up climbing to $22,500.
Unfortunately, there is no telling when the SEC will start approving exchange-traded funds for cryptocurrencies. Previous ETF applications have been rejected by the government agency. However, many remain hopeful that an ETF approval is bound to happen especially if a trusted financial institution files the application.