Approval of the first Bitcoin ETF is inevitable experts say, and when it does, the Bitcoin price could explode. We are getting closer to 11 March when the Winklevoss Bitcoin Trust, filed in July 2013, gets the nod from the Securities and Exchange Commission (SEC), or will it?
Once the ETF is listed, it will be opened to millions of traders who have an account as well as banks, hedge funds, pension funds, insurers… basically anyone who wishes to invest. Every dollar invested in the ETF must be underpinned by Bitcoin, will there be enough liquidity in the market? Bitcoin analyst, Spencer Bogart suggested that $300 million would flood into the ETF in the first week. No wonder everyone is bullish about the Bitcoin price!
As reported by Bloomberg, the Securities and Exchange Commission is undecided over the bitcoin exchange-traded fund and perhaps it shouldn’t be. There are a number of reasons Winklevoss Bitcoin ETF should be approved. ETFs have a long history of penetrating “new, exciting and occasionally untapped investment areas” – Bitcoin is most certainly that. It seems that approval the first gold ETF took more than four years for the SEC to approve, so this time frame is not new.
Just in January 2017, the SEC delayed the ETF to 11 March 2017.
According to the Wall Street Journal “If the Winklevoss fund isn’t approved, the closest thing to an ETF will be Bitcoin Investment Trust, which uses a private-trust structure and is managed by Grayscale Investments LLC, a unit of Digital Currency Group Inc. Only accredited investors can buy the shares on the primary private market, where they are priced in line with bitcoin. The investors must keep holdings for a lockup period of a year. Then they can sell on a secondary market, the over-the-counter OTCQX, where they currently sell at a 15% premium to the value of the underlying bitcoin, a margin that has been even wider in the past.”
Let’s not go there yet… waiting for March!
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