BlackRock will not launch cryptocurrency ETF until market is legitimate

Summary:

• Major cryptocurrencies are taking step back after huge gains yesterday

• BlackRock CEO: BlackRock will not offer crypto ETF until the crypto industry is legitimate

• Dash (DASH on xStation5) shrugs off overnight drop

Major cryptocurrencies started new week on the back foot following decent gains achieved yesterday. Dash is one of the outperformers as it managed to almost fully erase overnight drop. The capitalization of the whole market stands a little below the $212 billion handle whereas the most famous cryptocurrency accounts for 52.8% of this value.

A strong upward impulse yesterday allowed BITCOIN to break above the short term resistance zone ranging $6420-6440. However, not long after the bounce the most famous cryptocurrency pulled back towards the aforementioned price zone. In case pullback is to deepen the 33-period moving average (green line on the chart above) may be the first level to watch. Source: xStation5

Let's start with rather downbeat news for the cryptocurrency market. BlackRock, one of the world’s biggest asset managers, is not keen on launching cryptocurrency ETFs. Larry Fink, CEO of BlackRock, said that the company will not take a step into the cryptocurrency market unless the industry becomes “legitimate”. Potential for scams, money laundering and tax evasion resulting from the decentralization and high degree of anonymity were named as major hurdles towards launching passive cryptocurrency investment vehicles. However, Fink said that he thinks the cryptocurrency sector will be ultimately regulated by governments as authorities would like to have insight into where the money is going. All in all, BlackRock sees potential in blockchain but stays reluctant to putting clients’ money at stake in the unregulated market segment. It is quite interesting as Fink often expressed his scepticism of cryptocurrency and even labelled Bitcoin as “index of money-laundering” few times.

As major cryptocurrencies move in tandem to each other most of the times one should not be surprised that situation on the RIPPLE chart is similar to the one of BITCOIN. The coin broke above the price zone marking the upper limit of the consolidation range yesterday but pulled back to today. However, notice that latest H4 candlesticks show that bearish momentum may be easing. Source: xStation5

With a lot of blockchain-related projects surfacing lately it is easy to lose track of existing projects and some of them already made it to the daily routine of people around the World. One such project is Lition, the German energy project built on the Ethereum blockchain. Lition is present in 12 major German cities and services around 700 households. Lition allows German citizens to pay for energy directly to the producers and therefore is utilizing one of the blockchain’s key features - omitting middleman. Via Lition solution the energy is put up on the energy exchange where customers can trade directly with producers, an action that was previously limited to the big energy supplying corporations. Cutting out intermediaries is said to allow Germans to save as much as 20% on their energy bill while power plants can count on revenue boosted by as much as 30%.

DASH is an exception among major cryptocurrencies today as the coin managed to almost fully erase overnight drop. In turn, DASH is one of the best performing cryptocurrencies today and may be set to test the resistance zone above $170 handle in the nearby future. Source: xStation5