BItcoin ETF Is One Step Closer To Realization

tysler (72)in #bitcoin • 7 years ago

Bitcoin ETF could turn the tides in 2019

Just early this month have been ongoing talks of pushing the crypto ETF agenda forward, since the rejection of the Winklevoss Bitcoin Trust ETF last year. Van Eck Associates Corp. and SolidX Partners Inc. filed a request to the US Securities and Exchange Commission hoping to list Bitcoin-related ETPs. The promise of a physically-backed and lost and theft insured fund is the most challenging yet for cryptocurrencies. Source: Bloomberg - Camilla Russo.

Exchange Traded Funds (ETFs) could open doors to well regulated financial products, one step ahead of Bitcoin futures. Highly volatility and the lack of depth of market were some of the cited challenges. However VanErk is not giving up.

“While I’m still skeptical a Bitcoin ETP gets approved in any form this year, you gotta be in it to win it, and this extra hustle from VanEck could pay off down the road,” said Eric Balchunas, a Bloomberg Intelligence ETF analyst.
Source: Bloomberg - Camilla Russo

Image source: Pexels - Negative Space

Luck shines on brothers Cameron and Tyler Winklevoss, as they acquired a patent for the creation of a long-awaited Bitcoin ETF on June 19. The Winklevoss brothers are actively working on crypto trading instruments, and according to publically available data, they have acquired seven crypto-related patents since last December. Source: financemagnates - Arnab Shome. Due to SEC’s strict rules, no Bitcoin ETFs are listed on exchanges yet.

What holds for a Bitcoin ETF is the opening of the gates to institutional investors as an ETF could provide the security required and exchanges could acts trusted custodians. Michael Strutton, the CEO at IronWood, explained in a column that if an ETF is approved by the US Securities and Exchange Commission (SEC), anyone with a 401k, IRA, or an investment account with brokers like Fidelity and Ameriprise Financial can easily invest in the bitcoin market. Source: newsBTC - Joseph Young.

“If ETFs add 24 million US investors and the upward momentum adds 14 million from the rest of the world, then that adds $84 billion and $336 billion, respectively, to the market cap. Over the past six months, Bitcoin’s market cap has swung from $326 to $110 billion. Adding $420 billion to the market cap could put Bitcoin price range from $26,000 to $44,000.”
Source: newsBTC - Joseph Young

We could be looking at a Bitcoin price at $35000 with Bitcoin ETFs. John Hyland, the global head of exchange-traded products for Bitwise Asset Management, sees the approval of a Bitcoin ETF sometime in 2019. Once the SEC approves the first crypto ETF, Hyland said more such products will come to market since there will be no grounds for not approving similar products. Source: CCN - Lester Coleman.

We Are Waiting. And Hodling.