Crypto Update: ETFs on the horizon?

Jacob Pouncey

Cryptocurrency analyst, Saxo Bank

Summary:  The big question in the cryptocurrencies space continues to be the potential arrival of exchange-traded funds. New developments at the SEC point to increased support for a Bitcoin ETF. Meanwhile XRP prices could see gains from parent company Ripple's development of its cryptocurrency product for commercial application.


This week the entire crypto market cap rose 6% to roughly $200 billion. Ethereum outperformed the market by rising 21% over the same period. Conversely, Bitcoin is up 1% for the week. After the precipitous drop at the beginning of September, BTC is trading between the $6,100 and the $6,500 levels. Investors should expect an increase in price action as we move closer to the Bitcoin ETF decisions or delays near the end of the month. 

SEC commissioners favour Bitcoin ETF

Hester Pierce, a US SEC commissioner also known as CryptoMom, believes that the SEC should not look at the underlying Bitcoin markets when looking to approve a Bitcoin ETF, but at the ETF itself and the exchange on which it would trade. Furthermore, the addition of Elad Roisman to the commission helps increases the number of commissioners in favour of a Bitcoin ETF. Now the commission only needs one more vote to have a majority in approval of an ETF. However, the decision could be delayed as far as Q1 of next year. 

Ripple to launch cryptocurrency product

Distributed ledger-based company Ripple is set to launch its cryptocurrency product, xRapid, for commercial application soon. This announcement by a head of regulatory relations for the company is largely responsible for the increase in XRP price over the last few days. This news could continue to drive XRP prices higher especially as we head towards Ripple’s annual conference at the beginning October. Afterwards investors can expect the lustre of XRP to wear off after the launch of xRapid and any announcement during the conference.
Enlarge
Source: Coinmarketcap.com

You can access both of our platforms from a single Saxo account.

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)