This question has been bugging every Crypto investor and all the digital currency enthusiasts for a while now!
Lets put an end to this analytically.
This will allow institutional investors and investment banks to speculate in Cryptos. They will be able to add to their existing asset classes and diversify their portfolio further by taking positions in crypto-assets.
The following graph from InWara’s Q3 report puts things into perspective.
This graph plots the RoIs of top listed ICOs between July 1st, 2018 and September 30th, 2018.
The vertical lines A, B, C, and D represent an event or news that may have affected the cryptocurrency market. The line ‘A’ represents the day when SEC officially postponed its approval hearing of Bitcoin ETFs.
The delay, as you can very well see caused a massive crash in the Crypto space with ICOs tanking more than 50%.
source: InWara’s ICO database
This graph shows the aggregate average market trend for the top 5 sectors of ICOs. All of these together fell by half their indexed price over a period after the hearing was postponed by SEC.
If the ETF gets approved this time round, the least we can expect is a trend reversal followed by a market recovery to previous early-July highs, if not higher!
This will open floodgates for investors with deep pockets and strong research to invest in Cryptos. Adoption of Bitcoin among common portfolio assets will rise which will catalyze traction in the industry.
One of the key opportunities that this would create is for data firms such as InWara to prosper since the lack of accurate, aggregated knowledge of the Crypto market is a major lacuna in intelligence in financial markets.