The crypto-stock market has a lot of investors, including investors who are buying and selling securities and hedge funds, but some are also holding them with little understanding of how they work.
The cryptocurrency market is poised to soar from $20 billion in 2017 to more than $250 billion by 2020, according to a report from research firm CB Insights.
The chart below shows how the market’s value will grow over time.
The bubble could burst and the stock market could crash, according a report by CB Insults.
The report predicts a 21% increase in the price of an ETF for the first time in two decades.
In an interview with CNBC, CB Insight analyst Brian Caudill said the crypto market is still “very immature,” and has “a lot of room for growth.”
“The fundamentals are not great right now,” Caudell said.
“The underlying fundamentals are very good, but there are many things we haven’t been able to quantify.”
Caudill predicted the market will eventually surpass the $300 billion it hit in 2013, but for now, it’s likely to remain at a low level.
“The market is currently at $250bn, and that’s a pretty good value,” Cattill said.
It’s not a surprise to many that the crypto markets value is so low, because investors are still not well versed in the concepts behind cryptocurrencies.
The industry, for example, has not fully embraced blockchain technology, which is a way of recording transactions on a blockchain.
While the technology has the potential to revolutionize how we manage our financial transactions, there are still a lot unanswered questions about cryptocurrencies, which are traded on the blockchain.
“There is a lot we don’t know about crypto, which has to do with why it is that it has a high valuation, and how it’s going to impact the rest of the market,” Cottill said, adding that “there is a real opportunity for a lot more.”
The blockchain is a technology that tracks transactions.
While many cryptocurrency investors are investing in ETFs based on their expectations of what will happen with the crypto industry, Caudll said many don’t realize the ETFs can be traded on an exchange or are trading on a third-party platform.
“You can go to your broker and buy the ETF on the exchange,” Cootill said of a crypto ETF.
“But the fact is, if you want to sell on an ETF, you have to go through the broker.
They’re not there to be your trading partner.”
For the first quarter of 2017, Cootills team of analysts estimated the ETF market at $100 billion.
In the first half of this year, the market jumped to $250 million, he said.
But in the third quarter of this 2017, it dropped back to $200 million.
This could signal the market is in the early stages of development.
It’s also possible that the market could end up at $300 million or $400 million.
“I don’t see the crypto ETF market going anywhere in the near term,” Catton said.
Catton, who is also an investor in a cryptocurrency trading platform, said that in the short-term, the markets value could be even higher.
“It’s still a really good bet to get in early on some ETFs,” he said, but said the price could fall.
“As time goes on, I think that it’s a little bit more of a wild card.”