Crypto entrepreneur and regular contributor to CNBC, Brian Kelly, said that there is no possibility for the approval of an ETF (Bitcoin, Exchange Traded Fund) in 2019. Kelly made his remarks in an interview with Cointelegraph at the Crypto Finance Conference, Switzerland, 18 January.
Discussing the general state of the cryptocurrency market, Kelly predicted that 2019 will prove to be better than 2018. The analyst said that "we are close to the end of [the bear market], but we could have another lower drop, it would not surprise me at all. "Speaking specifically of what we should expect from 2019, Kelly continued:
"Probably in 2019 the focus will be on the currencies – Bitcoin, Litecoin, some of these – because we have a lot of geopolitical tensions in the world. We are starting to see some global macro players use Bitcoin as an alternative to their position. 39, gold, or as a way to protect yourself from the fluctuations and volatility of the legal currency ".
According to Kelly, 2019 will see Bitcoin become a more accepted resource among traditional investors.
However, when asked about the likelihood that a Bitcoin ETF has received government approval this year, Kelly said there is no "no shot" for that.
The approval of a Bitcoin ETF – an investment fund that tracks the value of its underlying asset and trade in the stock market – by the US Securities and Exchange Commission (SEC) is a highly anticipated event that is seen by many as a prerequisite for important institutional investors entering the encrypted market.
Beyond 2018, the SEC received multiple Bitcoin ETF applications from various players, such as the Winklevoss twins, but has not yet approved any of them. Expanding from his point of view, Kelly said it is unlikely that the agency will change its opinion in the near future, since "there is too much that is not resolved". According to the analyst, it will take more than a year to fix the existing problems.
Kelly also predicted that the world will face a new recession in the coming years, followed by a new financial crisis. However, the nature of this will be different from previous crises, which will presumably create a window of opportunity for cryptocurrencies and will result in a real alternative to legal money.
As Cointelegraph reported last August, Kelly had previously predicted that the approval of a Bitcoin ETF would not take place before February 2019. He then stated the SEC's argument that the current BTC futures market it is not mature enough, emphasizing however that it is evolving rapidly.