Would a Bitcoin ETF ever be approved by Sec?
I am sure this question and more looms in the minds of many, as they wonder……maybe Bitcoin is done for.
Bitcoin has been languishing in the bear territory for 8 months now,
and its been lots of gloom and many bull traps, so far asphyxiating the optimism out many and bringing despair on most.
Many are pegging the deliverance from the bear market on an ETF approval(that they swear will send Bitcoin’s price on a Nasa rocket out the earth),
The latest SEC’s ETF denial(bringing the total number of ETF rejection to 9) may cast doubt on whether they will ever be a Bitcoin ETF.
But the good news is, the most important ETF has not been denied………yet.
And its the CBOE VanEck/Solidx ETF, i’m referring to.
It is the one most experts believe is the real deal, and it’s approval seems more likely than the previously denied ETFs.
Now the reason experts consider Solidx ETF a monumental price mover is
because it is commodity based as opposed to the others which are based of futures contracts.
But mind you, this is not the first Solidx Bitcoin ETF application,
The first one was rejected on March 29th 2017,
but Crypto optimists believes the market is a whole lot mature than where it was last year,
and the inclusion of a high profile partner like CBOE gives these application a mighty chance of getting approved.
Now here are the 5 things different about CBOE/Solidx ETF that might get SEC’s nod:
- CBOE is a respected institution:
The name CBOE has a lot of weight in the finance sector, and an ETF proposal coming from them appears to have been well thought out, and addressing most concerns raised by SEC in prior rejections.
2. The assets will be insured:
The SEC said in January that “significant investor protection issues” needs to be examined before they move forward with any approval for cryptocurrency ETF trading.
Now continuing on the thought that CBOE would have taken measures to make sure their ETF proposal SEC compliant, them providing insurance for underlying assets should address these concern of SEC.
3. Government Regulation:
The decentralise nature of Bitcoin is a regulation headache for most governments and financial institutions,
and it is one of the problems pointed out by SEC.
But thankfully some of Bitcoins main markets such as US, Japan, Korea,China has taken big steps in clarifying the regulation status of bitcoin.
4. Leverage
They are professional grade custodial services available now, which the ETF can leverage, that were not available last year(2017)
4. Maturity:
The presence of an insurance and custodial market shows the space is maturing.
Conclusion
The Sec rule against the Winklevoss Twins was a 3–1 vote,
but we have a pro-crypto official Elad Roisman who will most likely take the
place of Micheal Piwowar in Sec bringing the vote to 3–2 in favour of Bitcoin,
and in addition the democrats are also putting forward their candidate Allison Lee who from her previous works makes her most likely pro-Bitcoin.
SEC has chosen to delay its decision on CBOE’s/SolidX ETF until this September, the regulator in fact has the option to again defer its final decision
on the proposal until February at the latest, so until then we can only hope for the best.
p.s In my opinion the recent announcement by ICE(Intercontinental Exchange), including crypto assets in its offerings on its platform is bigger news(but i will treat that in my next article).
