I remember the day well…Friday, March 10th, 2017; i.e., 16 months ago. The long-awaited SEC decision regarding the Winklevoss Bitcoin ETF was due – and NO ONE in the Bitcoin community, myself included, thought it would be approved. After all, it was still just a $16 billion asset – having just passed $1,000 for the first time since Mt Gox; had not yet resolved its “scaling debate”; and was amidst attack from the Chinese government – which was in the process of issuing strict Bitcoin-related capital controls.
When BTC spiked that morning to a record $1,350, I thought someone “knew something”; but by the end of the trading day – a FRIDAY – there was no announced decision, and the price was back in the low $1,200 range. Thus, I thought the SEC might simply wait until the next trading day – Monday.
However, the decision came out late in the afternoon – and when, as expected, it was “no,” the price plunged to $950 or so. It then sharply rebounded over the weekend - to not far from the early morning spike; before plunging again Sunday night, when Roger Ver – the most vile, despicable person in crypto history – launched the “scaling debate” with his most pronounced “Bitcoin Unlimited” propaganda yet.
A lot has occurred since – including the end of the scaling debate; SegWit integration; surpassing of a $100 billion market capitalization; and launch of CBOE and CME futures contracts – which cumulatively, have legitimized Bitcoin as a new asset class, suitable for institutional investment. Thus, the potential for the latest Bitcoin ETF proposal being approved on August 10th are significantly higher – particularly because the crypto bear market has taken it out of the spotlight, as a potential government “threat.” And oh yeah, the CBOE itself co-authored it.
To wit, “a few days back, the US Securities and Exchange Commission (SEC) opened the CBOE ETF filing for public comments which is most likely to be concluded on August 10. The SEC’s official website states, “Comments on CBOE BZX Rulemaking” in regards with the “Notice of Filing of Proposed Rule Change to List and Trade Shares of SolidX Bitcoin Shares Issued by the VanEck SolidX Bitcoin Trust”.
This proposal calls for the listing and trading of SolidX Bitcoin-based exchange-traded fund (ETF) which states that it will only invest in Bitcoin. SolidX and VanEck came together for this in early June. It was not even their first attempt, but the third one to build a bitcoin investment project.
According to the CEO Jan van Eck…
“We believe that collectively, we will build something that may be better than other constructs currently making their way through the regulatory process. A properly constructed, physically-backed Bitcoin ETF will be designed to provide exposure to the price of Bitcoin, and an insurance component will help protect shareholders against the operational risks of sourcing and holding bitcoin.”
Moreover, one share will be roughly equivalent to about 25 bitcoin which means it is created for the accredited investors.
The buzz seems to suggest it has a chance of being approved – and given that Bitcoin futures have successfully traded for more than seven months; with BTC’s market cap stubbornly holding above $100 billion since November; I sense that SEC approval is a distinct possibility – particularly as leading Wall Street firms from Goldman Sachs to Fidelity are offering Bitcoin trading and custodial services; and in Goldman’s case, through its minority-owned Circle subsidiary, investing in crypto exchanges.
If the SolidX Bitcoin Shares ETF is approved August 10th, it will likely catalyze a massive explosion of the Bitcoin price – and with it, the cryptocurrency space in general. Which, atop the wildly bullish ramifications for institutional Bitcoin investment, should add additional support to the price in the coming month; and thus, disappointment for TA FUDsters who continue to insist the price will crash, despite the most bullish fundamentals in Bitcoin’s history; and, according to the Mayer Multiple, one of its most inexpensive valuations.