Nevertheless, Kruger pointed out that in the event that VanEck, SolidX, and CBOE applications for Bitcoin exchange-traded funds get turned down, the world’s most dominant digital currency will most likely crash, returning back to the 6,000 USD support region, or even worse, drop down to 4,000 USD region.
Bakkt is a rigidly regulated cryptotrading network created by the ICE, the firm behind the NYSE. As of now, Bakkt is undergoing the ecosystem establishment process, which is going to allow both retail cryptotraders and institutional financiers to contribute to the cryptomarket with due levels of financier protection and using the production that complies with the local US policies.
Next month, Bakkt is anticipated to deploy a digital currency futures market, continuing to increase Bitcoin’s liquidity. Earlier, the US SEC had turned down as many as nine BTC exchange-traded fund applications, motivating its decision by the fact that the size of the BTC futures market is insufficient to manage such fund.
With Bakkt coming into the picture of the cryptoexchange market, the emergence of CBOE’s involvement in the VanEck ETF, and the track record of VanEck in successfully applying for more than 200 ETFs with the US SEC, the expectations for the VanEck-SolidX ETF to get approval have significantly increased.
Within the upcoming 60-90 days, according to Alex Kruger, the restored passion regarding the market created by Bakkt and the VanEck exchange-traded fund will let the value of BTC return to its big resistance levels.
With Bitcoin failing to break out of the 6,000 USD level because of the low trading volume and comparatively low cryptotrading activity in the worldwide cryptoexchange market, the digital asset craves for a big catalyst to initiate a solid price surge in the short-term period and create movement on the upside, and the two financial institutions might become an essential factor, which can cause the rally of BTC price.
Nevertheless, Kruger claimed that the approval of VanEck-SolidX BTC ETF remains quite improbable, due to the fact that the SEC is concerned regarding the state of cryptoexchange market.
In the event that Bakkt is able to display such a level of volume that will confidently overwhelm the volume of cryptoexchanges, which provide derivatives or margin trading, including Bitmex and Bitfinex, the Commission might consider the approval of the exchange-traded fund. The problem with that is that the chance of Bakkt exceeding the volume of currently existing cryptoexchanges within a couple of months is highly unlikely.