Wall Street Crypto King Bart Smith Says Bitcoin is in “Show Me Mode”
Important Cryptocurrency Analyst Believes Bitcoin and virtual Currencies WIll Experience a Big Drop Before Rallying
Since Wednesday, virtual currencies in the market are operating mostly positively and recovering part of the value lost during the last weeks. But there are some analysts that are not sure where the prices of the most important cryptocurrencies are moving.
Bart Smith, Susquehanna’s head of digital assets, has been talking about cryptocurrencies during CNBC’s Fast Money. He marked that we are currently in a purgatory phase and that the sentiment remains in a state of near-superposition.
His comments were related to what Tom Lee, Fundstrat Global founder said about Bitcoin being a ‘show-me currency.’ About it, he commented that ETN markets are receiving an important number of investors and if that repeats, the numbers could keep growing.
Mr. Smith commented on the matter:
“It’s $8 million traded today (via ETN). So if you had that repeat in a fund over and over again that would add up pretty quick. I would think that if this volume persisted over time that the ETN could be a big deal, but the market didn’t move and the market is in show-me mode. There’s been a lot of news that has come along that you would have thought would have been a catalyst.”
Additionally, he said that a US-based and regulated crypto exchange traded fund (ETF) would have a much bigger impact in prices than other instruments.
Back on Thursday, a Swedish Bitcoin exchange-traded note (ETN) has recently became available for investors in the United States. However, this is not similar to the ETF we are used to talk about, indeed, as Bloomberg said this ETN is just a ‘soft opening of sorts for a crypto ETF.’
Some investors were thinking that this ETN would drive Bitcoin prices up, but the reality is that it did not happen in this way. The market registered moderated or small gains, which could be related to the negative sentiment that enthusiasts have since the beginning of the year.
During the time he was talking on CNBC, Brian Kelly asked him about the ICE-backed Bakkt platform.
“It was very surprising. You saw a lot of the big names in this space, you know, Novogratz and many others who were out there (in Bakkt). I don’t know why this isn’t a bigger deal, right? This is an opportunity for NYSE’s parent company, ICE, to create ICE futures, a custody warehouse in the spot commodity for institutions. ICE is a name that institutions trust.”
Both individuals at CNBC shared similar views and sentiment on the collaboration between the ICE; Microsoft and Starbucks.
As Smith pointed, the platform is just starting and it is in a very early stage. The first product that is going to be launched by Bakkt is expected to see the market in November, 2018. furthermore, he said that Bitcoin could bounce and be traded between $6,000 and $6,800 dollars for the next days.
It may take longer for the market to absorb the real effect of the platform in the community.