What is an ETF and how will it impact the Bitcoin Price? Good question…
Should ETF be listed, this means that Bitcoin will be exposed to thousands of traders and they do not even need a Bitcoin wallet to trade. This could potentially put a FIRE under the Bitcoin price as more institutional and government investors get involved.
Latest on ETF approval by the US SEC
The SEC has delayed its decision on the VanEck/SolidX bitcoin ETF proposal until the absolute final deadline of 27 February 2019 – announcement here
As reported by Cointelegraph. Hester Pierce, dubbed “Crypto Mom” by the community for her dissent with the SEC’s decision to reject a Bitcoin ETF proposed by Cameron and Tyler Winklevoss, said that a crypto or Bitcoin ETF is “definitely possible,” but it could be years away:
Definitely possible could be 20 years from now or it could be tomorrow. Don’t hold your breath. The SEC took a long time to [establish] Finhub. It might take even longer to approve an exchange traded product.”
Will Bitcoin Exchange Traded Funds (ETF’s) be approved soon?
As reported in the weekly news here, Many are asking when will federally regulated cryptocurrency exchanges appear within the US. One of the key reasons the Securities and Exchange Commission gave for their denial of Bitcoin based Electronically Traded Funds (ETFs) was the fact that the underlying security or asset was not listed on a federally regulated exchange. ICE, The Intercontinental Exchange that owns and operates the New York Stock Exchange, and NASDAQ, the world’s 2nd largest Exchange qualified by its market cap value of US $10 trillion, appear ready to fill that void. Watch this short video below:-
Back in February 2018, Harvest Portfolio received approval for the first CANADIAN blockchain exchange-traded fund (ETF) which launched on the Toronto Stock Exchange.
Also in 2018, the SEC has established their FinHub – Read further – SEC FinHub Key To Compliant ICOs states Republic CEO Ken Nguyen
As reported by the Financial Times mid November 2018 – Switzerland gives green light to first cryptocurrency ETP (Exchange Traded Product)
A crypto startup, Amun AG, has been given the green-light to list an index fund on a traditional stock exchange with Hany Rashwan, co-founder and chief executive of Amun, stating:
The Amun ETP will give institutional investors that are restricted to investing only in securities or do not want to set up custody for digital assets exposure to cryptocurrencies. It will also provide access for retail investors that currently have no access to crypto exchanges due to local regulatory impediments.”
This was born out of our frustration at seeing vast swathes of the world excluded from easily participating in the digital assets revolution,” Rashwan said in an email to Bloomberg. “We want to make buying crypto as easy as buying a stock.”
Given Switzerland’s long-standing conservative nature and methodical decision making, it will certainly impact the SEC’s decision on bitcoin ETFs in a favourable way, as it shows how another established financial market can handle the complexities of new technologies. Switzerland is leading the way in the crypto revolution by adopting regulatory measures which allow complexity to be removed, innovation to flourish, and makes mass adoption a reality.Given the common ETP structure, traditional and institutional asset managers will be able to invest as they do in any ETF or other structured products without the hassle of having to deal with governance surrounding wallets and other complications which come with investing in cryptocurrencies.In the same way, it makes it easier for institutional and retail investors to allocate to the crypto space. Being able to allocate to the crypto space from their current investment account removes a lot of fear and complications from the process. Whenever complexity is removed, it makes it easier for capital to flow into the market.”
What is an ETF, watch this short explainer video to learn more