⚡️9 ETFs rejected, we DID expect that !
By: Yann Quelenn
Tags: Bitcoin, Chainfund Report, Weeklyreport, Chainfund, Cryptocurrency

⚡️9 ETFs rejected, we DID expect that !

Chainfund weekly report 24/08/2018

Dear Investors,

As of the 24th of August, the share prices of our portfolios are the following: $70 for the Dynamic and $69 for the Extreme.

As mentioned on the last weekly report, around 80% of retail traders were short bitcoin which is actually close to an all-time high. I mentioned that so many short-oriented traders should actually push bigger whales to liquidate them. What happened? Bitmex closed its platform “for maintenance” and the BTC price increased by 7%. I am not saying Bitmex did something bad, I rather say it is really unfortunate… All the technical analysis in the world could have not predicted that move. As a retail trader: never short bitcoin, that’s the best way to lose money. Of course, some may win but a very large majority will lose. Better to split towards a long entry. I am very confident that bitcoin will continue growing..

Chainfund Weekly Reports are communicated to investors prior to publication on Medium

This week, we had 9 ETFs being rejected by the SEC. We did expect that. The market already priced in that as the bitcoin price did not move. Actually it went slightly higher. The only date to be remembered is the 30th of September where I continue to believe that we would see the acceptation of the CBOE & VanEck SolidX ETF. As I mentioned last week, this ETF has two important features: the price of the ETF will be based on the OTC market and not derived from an exchange price (less subject to manipulation) and all the BTC will be insured. The other applications got rejected because of potential bitcoin price manipulating fears. That is not a surprise.

Yes ETF will make things very easy for investors to buy bitcoin. It means that all the wealthy people could easily add one BTC to their portfolio in one single click. But ETF is only a financial product and I believe that while being an important news, there are more important news out there.

In particular I believe that Bakkt is way more important than the ETF approval. This company is supported by Microsoft, Starbucks, BCG (!!!) and so on, this may actually is the biggest bullish news of the year

Bakkt is a platform launched by the New York Stock Exchange’s owner, targeting institutionals to buy, sell, spend and STORE cryptocurrencies, in particular Bitcoin. It is worth noting that that cybersecurity risk is very important in crypto and not everybody (even institutional companies) are not willing to take on that risk. That is where Bakkt is a game changer. There won’t be any cash settlement or margin trading.

To finish, something rather distracting also happened this week on Twitter. People now mentioned a new contrarian indicator based on what the CNBC Fast Money account is actually tweeting. This indicator has been on point at 95% since last December. Another proof that no one should ever listen to mainstream medias before doing any type of investment. It fits well into my “Sentiment Indicator” to rate the market. They go with the flow.

Talk to you next week,

Yann Quelenn