What Are The Bets Against Bitcoin Growing?

More On Cryptocurrencies

It has been noted that more investors are betting that Bitcoin which is the leading cryptocurrency is set to decline amid rising volatility in the digital token market and a steep selloff. Here MarketWatch has reported that the fourth-largest cryptocurrency exchange has seen bets against the Bitcoin double and an outstanding short interest which is more than 36,000 BTC on the Bitfinex exchange, as it reported that Bitcoin was at 18,000 BTC.

The Cryptocurrencies That Are Dealing With Sell-Off

Thereby an increase in negative bets against Bitcoin comes amid a broad sell-off in the cryptocurrencies in recent days whereas concerns rise that entrepreneurs are cashing out their Initial coin offerings with some digital tokens including Bitcoin may have become overvalued as nearly all of the largest cryptocurrencies fell. The declines are observed to come on the heels of a rally as investors bet a Bitcoin exchange-traded fund receiving regulatory approval in the US as regulators withheld approval for now.

There are many investors viewing Bitcoin and cryptocurrency ETFs as a way to bring legitimacy to a market where it is anonymous and unregulated as the investment firm VanEck as well as SolidX, a financial service company had partnered earlier in the year to get approval for a Bitcoin ETF where these efforts were rejected by the SEC. The SEC then decided to delay, deciding as with no SEC driven rally insight, cryptocurrencies declined. Thereby of the largest 100 cryptocurrencies tracked by Coinmarketcap.com there is only one traded higher. Here is why the market capitalization of the top 100 digital tokens combined declined to $ 193 billion much more a far cry from their combined value of $ 835 billion as the lack of optimism on the part of crypto investors’ resulted in digital token declining. 

Even though not everyone thinks it will continue to decline as CrisYoo, portfolio manager at crypto-only investment firm Black Square Capital told MarketWatch that he thinks the cryptocurrency market is near the end of the bearish sentiment as most importantly the ecosystem will continue to develop and grow from the increase in talent and public awareness leading to the recovery of the market shortly.

What Is NYSE Arca?

Here comes an electronic securities exchange in the US, NYSE Arca, on which exchange-traded products, as well as equities trade whereas the exchange, specializes in ETP listings including exchange-traded funds, exchange-traded notes as well as exchange-traded vehicles. Thereby placing typical orders, NYSE Arca has allowed investors and traders to participate in opening and closing auctions in ETFs and place midpoint orders that are between the bid and ask price.

More About Understanding NYSE Arca

NYSE Arca came around as the world’s leading ETF exchange as of March 2019, in terms of volume and listings. Therefore the exchange commands 19.5% of the ETF market share in the United States as the lists over 2,238 individual ETFs have the NYSE Arca listed ETFs roughly $ 3.8 trillion in assets under management.

It is very much like other electronic communications network that NYSE Arca implements a liquidity free rebate program to improve overall market depth. Therefore as an example, market makers are charged a fee to remove liquidity and provides a rebate for adding it. It is here that fees and rebates typically range from $0.02 to $0.03 per share. 

A Little About NYSE Arca History

Formed in 2006, after the NYSE acquired Archipelago, NYSE Arca is a leading electronic exchange network. Archipelago created in 1996 was one of the first ECNs facilitating electronic trading on major US exchanges such as NYSE, NASDAQ, and American Stock Exchange through the Archipelago Exchange in 2001. Archipelago had widespread usage by the mid-2000s from institutional trading firms utilizing the exchange’s fast execution speeds and liquidity pools.

Later the critics of the merger suggested it would end floor trading that has been in place since the NYSE’s inception in1817 as the large-cap stocks continue to get traded on the NTYSE using the open outcry method. Thereafter NTYSE Arca’s parent company is Intercontinental exchange after it purchased NYSE Euronext in 2012. 

Finally, NYSE Arca and Cryptocurrency Listed Funds

NYSE Arca resubmitted an application to the Securities and Exchange Commission in late 2017 to list two ETFs that track Bitcoin futures contracts traded on the Chicago Board Options Exchange as well as the Chicago Mercantile Exchange – the ProShares Bitcoin ETF as well as the ProShares Short Bitcoin ETF. Here the SEC has traditionally been reluctant to approve Bitcoin ETFs due to the cryptocurrency’s speculative and unregulated nature. It is here that NYSE Arca has proposed that the two funds did not invest in Bitcoin directly but that did not alleviate the SEC's underlying concerns. By early 2019, Bitwise which is another cryptocurrency ETF had filed to list on NYSE Arca. Thereby permission from the SEC was not yet granted as of April 2019.