Influence of upcoming Bitcoin ETF's on the bitcoin price

A couple of bitcoin ETFs are undergoing the approval process of regulation. The one that has undergone the process for the longest time is the Winklevoss bitcoin ETF. This process has been ongoing for the past 3 and so years.

Bats has filed a proposed change of rule, which would necessitate listing of the ETF.Bats is the exchange that ETF would be listed on. The process has taken long since the SEC has chosen to extend the decision-making time. However, the decision will be, made by Match 11.

The SEC is considering a few factors in the process of coming up with this decision. The main factor is Bitcoin itself and the SEC is wondering if the digital cash is suitable for ETF since it is not under any form of regulatory monitoring. The SEC is also wondering about the stability, fairness, and efficiency of the markets in which the Bitcoin trades on and if the markets are subject to any form of market manipulation.

Moreover, SEC is considering the Bitcoin reference price and how the Bitcoin would securely be stored.

In the case Bitcoin would be adopted after approval by SEC, it would attract at least $300 million in the first week. A lot of institutional capital would flow into the Bitcoin due to its registration since most institutional fund managers have mandates that make them put funds into registered securities.

The effect of this is drying up of liquidity since everyone wants to buy the Bitcoin and hold it. Additionally, the public will stop seeing Bitcoin as a currency for purchasing illegal goods leading to a lot of People saving Bitcoins. Hence, the chance that regulators would enact regulation against Bitcoin would decrease. All these positive effects would eventually lead to an increase in the price of Bitcoin.

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