Bitcoin ETF May Be Approved in 2019

The focus on the Bitcoin ETF has shifted from the possibility of its implementation to the timing of approval. Due to the predictions of several different departments, recent statements indicated that it is a more realistic for ETF to be approved in 2019.

In brief, ETF can be any fund (a mutual fund, hedge fund, etc.) that is traded on a listed exchange. ETFs are primarily traded under the supervision of the Securities and Exchange Commission (SEC) or the US Commodity Futures Trading Commission (CFTC), while most cryptocurrencies, including the major coins alike bitcoin currency, litecoin ltc and altcoins alike monero coin, xenon token, are not considered as such assets. Therefore, the funds exchange must register the shareholders’ equity in the fund as securities, and the trading assets are still unregulated.

It is the unregulated feature of the digital assets that is believed to have largely contributed to the SEC’s silence and its approval.

Historically, many applications have been submitted to the SEC to request approval of such funds. The most popular of these applications were two applications submitted by Winklevoss twins, which were rejected in March 2017 and July 2018, respectively. However, it did not prevent other applications from submitting to the SEC, although the details were modified and allegedly improved.

In the US stock research paper released on August 5, 2018, Michael Graham CFA and Scott Suh pointed out that the arrival of potential bitcoin ETFs remains the primary consideration for institutional investors who enter the emerging asset class, and the proposal of VanEck / The SolidX is listed separately as the most notable pending application.

While most key players in the ecosystem do not regard ETFs as an absolute necessity for bitcoin development, most believe that ETFs will have significant short-term effects at any time. Some even predicted that the ETF will be the catalyst for the market before the next stage of bullishness.

In the research paper mentioned above, the author acknowledges that interest in potential approvals for Bitcoin ETFs has increased significantly over the past few weeks. However, the US Securities and Exchange Commission recently rejected the second proposal of Winklevoss twins, which disappointed people. They believe that this leads to the low possibility of ETF approval in 2018.

CryptocurrencyResearch

Written by

Information about cryptocurrency.