March 11, 2017
Big news – U.S. regulators have just rejected the listing of a Bitcoin ETF. Predictably, Bitcoin’s price plunged by 18%. Many Bitcoin investors would have been dismayed by the decision especially those who would have seen their profits wiped out overnight.
So what chance does Ethereum have?
A lot. The potential is unlimited.
Surprisingly, the price of ether was not affected. In fact, it rose strongly back to $20 near its all-time high and we strongly believe that because it was so unphased by the announcement that its bullish recovery has a long way to run. So those who haven’t bought ether yet would benefit from doing so now as the true value of ether is yet to be completely priced in. And those who already hold ether shouldn’t sell just yet.
The strong performance of ether is encouraging for investors in Ethereum because this demonstrates how it can stand on its own two feet.
Its strength is justified. Just recently, the Enterprise Ethereum Alliance was formed by some big names such as Microsoft, J.P. Morgan, BP, Thomson Reuters, Intel and BNY Mellon. This is a massive endorsement to make Ethereum technology work.
What we are seeing is a trend towards a greater acceptance of cryptocurrencies, especially for ether. And that has been the greatest challenge. We are now starting to see a willingness to put cryptocurrencies in the spotlight and sooner or later it will become the norm.
Ethereum may well be the dark horse that ends up being the first to achieve ETF status instead. An ether ETF is just around the corner with EtherIndex filing a petition with the SEC to launch one. While we still see this as too soon for it to be accepted, lessons learnt from the failure of the Bitcoin ETF will only strengthen the case for its wider acceptance.