Around January 7th this year, the total crypto market capitalization was at a whopping $830 Billion. This was during the period that Bitcoin (BTC) had peaked at $20,000; Ethereum (ETH) had reached $1,400; and XRP was reaching for the stars at $3.82. But soon after these peak values, the market started a decline that is still evident to this day when the total market capitalization is worth $217 Billion.
The cause for the decline has been linked to the ban on crypto trading in China; the RBI ban in India; South Korea and Japan cracking down on rogue exchanges; exchanges being hacked; cryptocurrencies such as XVG being hacked; and many more factors. However, there has been progress in terms of regulatory direction from Malta, Japan, South Korea, Philippines, Australia, just to name a few.
Bakkt and a Bitcoin ETF
Crossing over the pacific to the United States, two pending events could be the trigger the crypto market needs to reach and surpass the $830 Billion valuation witness earlier on in the year, to the highly anticipated $1 Trillion mark. These events are the launch of Bakkt, and the approval of a Bitcoin ETF by the SEC.
The thing is, both Bakkt and a Bitcoin ETF will make it possible for regular investors to invest in Bitcoin (BTC) and cryptocurrencies, without carrying all the risks of storing there own digital assets. The custody services will be provided by Bakkt and probably CBOE in the case of the ETF. This then means that institutional investors can invest in bulk without worrying about being hacked for the burden is in the hands of Custody service providers such as Bakkt.
With the custody question solved, we will have the traditional retirement funds, trust funds, high net individuals, hedge funds and more, getting into crypto investing through Bakkt and the Bitcoin ETF.
What Does it All Mean?
It means the crypto markets will bite off a chunk of the value of the traditional US Stock market which is estimated to have a total market capitalization of $30 Trillion. If Amazon and Apple stocks each have a market cap of $1 Trillion, the crypto markets can easily make this value once Bakkt goes live and an ETF is approved in 2019.
Summing it up, we are currently in a bear market that has led the crypto market to be valued at $217 Billion at the moment of writing this. With both Bakkt and a Bitcoin ETF, this valuation can reach the highly anticipated $1 Trillion mark quite easily.