The period of scary variation and volatility seems to be in the past for Bitcoin. After a huge climb into the $200 in the spring, the digital currency value has been fluctuating around $90 for the past few days, after a light drop.
All this despite happenings like the closure of Liberty Reserve and the announcement of a Bitcoin ETF made by the Winklevoss Twins last month. So, what’s happening with cryptocurrency?
Well, according to Alan Silbert, CEO of luxury goods retailer BitPremier, “potential buyers are sitting on the sidelines now while issues play out with Mt. Gox and the next exchanges to come online, regulatory developments, and companies deciding to shut down because of the regulatory burden”.
“Meanwhile, I know that a bunch of activity is percolating in the background with new Bitcoin startups taking shape. So I see it as a kind of transitional period right now. Plus the US equity markets keep hitting record highs and investor dollars are going there”, he adds.
And what about the Winklevii? Silbert says that the “Winklevoss ETF is going to have to go through a lengthy registration process with the SEC and also market to authorized participants to sign-on to the concept (might be telling you something you already know: large financial institutions that essentially make the market, oil the machine, and take some risk for the arbitrage opportunities)”.
As stated by the CEO of BitPremier, “this will take a while and the ETF may not happen in the foreseeable future, especially if they can’t convince authorized participants to sign on, so it takes a lot of the kick out of the press release. The press has also been pretty negative on the Winklevoss ETF”.
This might be just one opinion, but it comes from an expert with a lot of experience in the Bitcoin field, so he knows what he’s saying. When we entered into the cryptocurrency world, we knew it was something uncertain… The only thing left to do, like in so many other cases, is to wait and see.