[2017-02-05] As Bitcoin ETF Nears, Analysts Warn of Trading Frenzy

[bitlamp]

Some predict a speculative rush if SEC approves a new fund in March
http://wsj.com/public/resources/images/IF-AC901_BITCOI_GR_20170126112050.jpg

If the Securities and Exchange Commission approves a bitcoin exchange-traded fund next month, it might set off a speculative rush into bitcoin.

An easily accessed ETF that tracks the value of bitcoin could cause money to flood into the fledgling bitcoin market, analysts say. Indeed, what some see as a chance for average investors to participate in one of the great financial innovations of recent years could set off a trading frenzy in an already wild market.

“My concern is that the launch of an ETF could lead to irrational exuberance if the price of bitcoin appreciates dramatically,” says Christopher Burniske, blockchain-products lead at money manager and research firm ARK Investment Management. ARK invests in Bitcoin Investment Trust, an ETF-like fund that already trades over the counter but currently is only available to wealthy investors.

wsj.com/articles/irrational-exuberance-for-bitcoin-etfs-1486350601

[Carlton Banks]

Interesting how the establishment media are beginning to pump Bitcoin.

Could it be they are doing this in anticipation of a potential BU-chain fork, so that plenty of burned investors spread the establishment's favourite form of Bitcoin news: "Bitcoin is dead"? Considering these people are supposed to be marketing themselves as/to financial analysts and investors, you'd think they'd actually do a meaningful risk assessment.

[European Central Bank]

does anyone know what the possibility is for pure paper bitcoins to dilute things massively? i know solidx and the winklevii are backing them with real coins, but would this open the floodgates for GLD style skulduggery from others?

[d5000]

My opinion to this topic is a bit mixed. On the one hand, it can drive new capital inside the Bitcoin ecosystem and bring opportunities and incentives for new businesses and service providers. On the other hand, it would consolidate Bitcoin's image in the public opinion as a speculation vehicle and drive its volatility up again, making it less suitable for real-world use.

And I fear that if the blocksize problem is not solved when the (bullish) positive ETF news are out, we could see a speculative bubble followed by a deep crash - because many people would try to invest in Bitcoin and see themselves stuck in a totally full blockchain, leading to lots of bad news in the media.

does anyone know what the possibility is for pure paper bitcoins to dilute things massively? i know solidx and the winklevii are backing them with real coins, but would this open the floodgates for GLD style skulduggery from others?

Interesting question, but I am no expert here. Does someone know the answer?

[Kprawn]

If you look at the type of questions the Securities and Exchange Commission has, then it shows that they know very little about the

technology, and if they make decisions based on this knowledge.... then we will have a negative outcome on the ETF. I think someone

with a bit more technical knowledge should go there and explain more about the technology. {Andreas did a magic job with the

Canadian senate } 

[wry]

A coinbase article on the ETF suggested it was unlikely to be approved.  Too bad, as it would really help the price of bitcoin.

I agree, SEC really doesn't understand, and I think that's why they probably wont approve it.

[maku]

It has been known for a long time that SEC final extension period will end in March. Why do we have this news resurfacing just now?
Some news portals needed a cover story? I don't mid, as long as bitcoin's price will go higher as a result.
But at the same time it is highly unlikely that SEC will approve ETF in 2017. I heard some opinions which suggests that SEC finds bitcoin uncertain and problematic asset.

[just_Alice]

Interesting how the establishment media are beginning to pump Bitcoin.

Could it be they are doing this in anticipation of a potential BU-chain fork, so that plenty of burned investors spread the establishment's favourite form of Bitcoin news: "Bitcoin is dead"? Considering these people are supposed to be marketing themselves as/to financial analysts and investors, you'd think they'd actually do a meaningful risk assessment.

Actually they have no choice. Expecting big rise of Bitcoin in the near future they want to be the first letting their audience to know. It's really interesting times we live in, media who were always going negative on BTC now is spreading good news about it.