The shares of CoinBase, the first cryptocurrency exchange to go public, went from USD 250 to USD 381 in a few hours. Morgan Creek believes that the SEC will approve a Bitcoin ETF in the United States but that could happen in one or two years.
In April, the cryptocurrency market experienced various investment product launches, which would make it disruptive. Undoubtedly, this situation can provide investors with a basis on what will occur in the month that has recently started.
There Was a Little Turmoil When Coinbase Went Public
Since March, the cryptocurrency market had been anxiously waiting for the arrival of April 14th. That day would be the first time that an exchange would list on the stock exchange. Everything happened as planned and Coinbase became a celebrity on Wall Street.
Before the listing, experts like David Trainer, CEO of New Constructs, stated that the expected valuation of the exchange was ridiculous. Although the reference price before that date was USD 250, the shares of Coinbase reached a high of USD 400 in 30 minutes.
However, the price of CoinBase shares approached the reference price at the end of April. At the moment of writing this article, a share is valued at USD 297.
A few days after the listing, the cryptocurrency market learned that insiders of the company sold 12,965,079 shares. This raised conspiracy theories that the lawyer of the cryptocurrency exchange appeased soon.
Many Cryptocurrency ETFs Received Approval outside the United States
In early April, Mark Yusko said that Morgan Creek believes that the SEC will approve a Bitcoin ETF. The increase in the adoption led them to consider a greater likelihood of approval by the SEC.
However, Todd Rosenbluth, ETF Research and Mutual Funds Director in CFRA Research, predicted that Bitcoin ETFs could reach the United States in one or two years.
While the world seems to be moving towards the cryptocurrency market, the United States remains paralyzed. In March, Canada approved a variety of Bitcoin ETFs, as well as the first Ethereum ETF in the world.
In the last week of April, the SEC increased the deadline for the approval or disapproval of VANANCK Bitcoin ETF. Therefore, the United States seems not to be in a hurry to approve an ETF soon.
During the Commemoration of Earth Day, Bitcoin Did Not Pass the Test
On April 22nd, Earth Day, there was a resumption of the debate on the environmental impact of the pioneering cryptocurrency.
A Square report indicates that there is an opportunity for Bitcoin to make the transition to an increasingly clean and resistant power grid. They titled the report as “Bitcoin is key to a future of clean and abundant energy.”
However, companies like Bessemer Trust highlighted Bitcoin’s energy inefficiency, comparing it with Ethereum.
There has been a growing number of cases of miners that use fossil or, even, nuclear energy. That has caused the environmental concerns about Bitcoin to increase.
The Main Cryptocurrency on the Market Lost Dominance in April
Throughout April, the pioneering cryptocurrency lost a growing part of its market dominance. For that reason, the cryptocurrency market could see this trend throughout May.
The tendency to lose market dominance of cryptocurrencies has persisted throughout the year. The dominance of Bitcoin, in particular, has fallen from 69% in January to 48.58%, its lowest level since August 2018.
By Alexander Salazar