Those participating in the cryptocurrency market are searching for a Bitcoin ETF. But during the last years it was not possible for any company to present a compliant ETF. But the next month, the U.S. Securities and Exchange Commission may allow the first Bitcoin exchange-traded fund to be operative.
The Chicago Board Options Exchange (CBOE), an important financial institution in the US, has filed for a change to list and trade shares of Van Eyck Investment and SolidX’s Bitcoin ETF.
The document, which was published on June the 26 reads as follows:
“Within 45 days of the date of publication of this notice in the Federal Register or within such longer period (i) as the COmmission may designate up to 90 days of such date if it finds such longer period to be appropriate and publishes its reasons for so finding […]”
The date that the market and investors are waiting for is August the 10, but a 45-day extension is possible. But several experts already have shown their support to Bitcoin ETFs. President of LogicBox Inc. Jeremy T. Goemaat said that he supports the listing and trading shares of SolidX Bitcoin Shares.
One of the main points marked by the SEC is that it does not want retail investors to be involved in the market, instead it would only allow high net-worth investors. And this is what this ETF is doing.
In general, most individuals in the market didn’t have high expectations for the proposal made by the Winklevoss twin’s COIN Bitcoin ETF. It was rejected back in march 2017, and after this, the price of Bitcoin dropped and reached an all time high at $1,350 dollars.
But since that moment, the market experienced an upward trend to $20,000 dollars in December 2017. Since that moment, Bitcoin lost almost 70% of its value and is being traded around $6270 dollars.
At the same time, custodial services are becoming a thing for institutional investors. Coinbase and the Swiss Stock Exchange are some of the important names that offer custodial services for their clients.
But another important reason for the SEC to approve this ETF is that there is a major regulatory clarity. The rejection made the last year was because Bitcoin markets were unregulated.
Since that moment, regulatory agencies like the SEC have been providing clarity on virtual currencies. For example, we now know that Bitcoin and Ether are not considered securities. Additionally, the IRS has launched an international effort so as to catch tax evaders working with virtual currencies.
And yes, banks and governments are trying to enter the market, which is sometimes difficult. But ETFs would help those institutions enter the market.
Andy Hoffman of CryptogoldCentral.com said that he believes that the latest filing by the CBOE has created a buzz in the virtual currency market.
“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.”