Bitcoin is a step closer to approval ETF

For several years, American companies trying to palm the issue exchange traded funds (ETF) for Bitcoin. Unfortunately, up till now so anybody and could not. The fact is that to run an ETF on the crypt you must first obtain a permit from the Commission on securities and exchange Commission (SEC).

Remember, a regular ETF or exchange traded Fund is an index Fund, whose shares are traded on the stock exchange. In fact ETF is a new type of securities that fulfill the role of a certificate on a portfolio of stocks, bonds, commodities. In the case of the role of the cryptocurrency ETF portfolio perform bitcoins.

The Commission is not very hurry to grant someone a license, citing the associated cryptocurrency risks. However, recently members of the SEC quietly approved the activities of the Fund associated with the futures trading on Bitcoin. According to experts, this news greatly increases the odds in favor of a Fee to an ETF on the crypt.

Whether to wait for the ETF for cash

New York Digital Investment Group (NYDIG) got the green light from the SEC for the right run the portfolio of the Fund at Stone Ridge Trust Vl. The Fund will invest in Bitcoin futures, which are traded on exchanges approved by the Commission. In other words, the Fund itself will not work with bitcoins or own them directly.

The Fund will seek to acquire a certain number of futures to the total value of bitcoins to support bitcoin futures the Fund was close to 100 percent of the total assets of the Fund.

Cryptocurrency ETF. Source: 2Биткоина

According to Bloomberg analyst Mike McGlone, the chances of approval of a crypto-ETF in 2020 rose to around 50 percent.

Approval NYDIG suggests that lobbying companies VanEck and Bitwise [who tried to get permission to launch a Bitcoin ETF — editor’s note] finally bearing fruit.

Today known cryptoanalysis did not come to a common opinion about the ETF on Bitcoin. Some point out that the successful adoption of cryptocurrency around the world she does not need exchange-traded Fund. Here is what thinks about the founder of the cryptocurrency the company BKCM Brian Kelly.

You can buy Bitcoin on a regular brokerage account or something like that. While I think that Bitcoin is not so necessary ETF, as is often said.

At the beginning of this year Kelly said that the approval of the ETF for Bitcoin is not the most successful idea in the long run. In 2019 ETF, according to his forecast, not supposed to take. As you can see, the expert was fully human.

The Winklevoss Brothers. Source: The Verge

It's not even approved by the ETF on Bitcoin already had a positive impact on the market. Recall the first time the Commission on securities and exchange Commission had not approved the application for the launch of exchange traded Bitcoin Fund on March 10, 2017. The latest was filed by the brothers Winklevoss, the founders of the exchange, Gemini. Then the refusal of the Commission was reported in the Wall Street Journal.

Experts believe that this helped people to stop seeing Bitcoin “helper to buy drugs.” Instead, he became a financial instrument, and later into the niche flowed “smart money”. In the end, volatility — i.e. the volatility rate of the first cryptocurrency — went down, and the market has become more Mature. Perhaps all of this including was the impetus for bullrun at the end of 2017. We have examined in detail this topic in a separate article.

What do you think about this? Share your thoughts in our cryptodata millionaires.


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