Bitcoin ()
By Tim Zagar, Co-founder of ICONOMI
The Securities and Exchange Commission’s deadline on the pending Winklevoss Bitcoin ETF (COIN) application is fast approaching, with the date for rejection or approval set for Monday, March 13th. The Winklevoss twins applied for a Bitcoin exchange-traded fund nearly four years ago, and while they’ve made several updates to their proposal since, the SEC has repeatedly requested extensions for the decision. Meanwhile, Bitcoin enthusiasts have been chomping at the bit, just as institutional investors have been on the edge of their seats with anticipation.
The most recent public development in this case is that the Winklevoss twins filed documents to the SEC on February 8th, indicating that the size of their ETF offering has increased from $65 million USD to $100 million USD, and the shares being offered has increased from one million to 10 million. This is a huge undertaking, and with just one weekend between now and the decision, many are guessing what will happen.
Here’s my take:
If the Winklevoss ETF is approved, we expect trading volumes and price per coin to rise as investors clamor to get a piece of this alternative asset, already valued at more than gold on a per ounce basis. An approved ETF will open doors to fresh money and provide a far better way for institutional investors to get involved in what is today a relatively small commodities market. If denied, prices will likely drop in the short term, but not for long –– bitcoin has proven to be an extraordinarily resilient currency.
Although no one knows whether or not the ETF will be approved, simply making it this far is a major step forward for the cryptocurrency industry. After all, just getting to this level is an endorsement from the authorities that bitcoin is worth talking about, that it has the opportunity to impact the mainstream, and trends dictate that it will continue to do so into the future. Another prediction: Regardless of the decision on March 13, Bitcoin ETFs will be approved in the future. We don’t exactly know when, but it will happen, and they will be commonplace in the coming years.
Today there are hundreds of digital currencies reporting growth and most have achieved double digit valuation increases since the beginning of 2017. Indications point to an entire industry just beginning to boom, and it's only a matter of time before people start applying for “altcoin” ETFs. We think several will be available over the next decade, but the first to arrive will be an ethereum ETF.
When a bitcoin ETF is approved and large investors get a taste of bitcoin, they will look for investments in other cryptocurrencies, too; ethereum is the next clear choice. After all, ethereum has value, clear differentiation, a strong community behind it, blue chip backing, and extant activity from traders at relatively high volumes. The odds are that once investors understand the true value and future potential of bitcoin, coupled with the fact that people like to have options within their financial portfolios, we see an ethereum ETF.
A larger question looms: Once these single-purpose ETFs are formed, what’s next? Following on from the success of bitcoin ETFs and ethereum ETFs, we see demand for digital asset platforms comprising a number of digital currencies or assets. Digital asset management platforms will greatly improve the way a growing number of traders and investors manage their cryptocurrency portfolios.
When the Internet initially came out, there was no need for a service to organize it all, as there were few sites in the beginning. Then we saw an explosion of sites, and that required resources like Yahoo to act as directories. But then the Internet become fully pervasive and ubiquitous, prompting a complete rethink and restructure. Google was the first to fully recognize the sea change, and its search engine is the foundation of the World Wide Web.
We are witnessing a parallel situation in the crypto space, with a plethora of new assets popping up today; tomorrow, that number could multiply many times. Though today there may be few recognizable to even educated investors, eventually we need a better way to organize the many thousands and millions of assets to be formed. Without a sophisticated, intelligent service tracking, sorting, and categorizing assets, it will be impossible to properly join and take advantage of a new economy that’s just beginning to dawn.
Founded in 2016 by the developers of payments gateway Cashila, one of the first registered bitcoin companies in Europe, ICONOMI is “uberizing” digital asset management with a breakthrough blockchain-based platform. Developed on Ethereum, ICONOMI provides the tools and easy-to-use infrastructure for users to manage a basket of high performing cryptocurrencies (also known as Digital Asset Arrays). The ICONOMI Cryptocurrencies Index (ICNX), currently undergoing beta testing, is a trading platform and a token that lets cryptocurrency enthusiasts, traders and investors maintain actively or passively-managed Digital Asset Arrays. The index currently consists of several high performing major cryptocurrencies including Bitcoin, Ethereum, Steem, Dash, Monero, MadeSafeCoin, Lisk, and Factom, among others. Tim Zagar, based in Slovenia, co-founded ICONOMI with Jani Valjavec. ICONOMI raised a historic $10.5 million USD Initial Coin Offering back in September 2016, with investments from nearly 3500 people across the world.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
