Crypto Advocate Brian Kelly Says February 2019 for First Bitcoin ETF Approval


Brian Kelly, a crypto analyst, was interviewed during a Fast Money segment for CNBC on August 23rd, and the topic of discussion happened to be the current decision pending on the Bitcoin ETF. Even though the Security and Exchange Commission opted to reject the proposals of 9 ETFs from three different applicants only the day before, he believes that the Bitcoin ETF approval is coming. However, he does not see that approval happening until February 2019.

The point of an ETF is that is a mutual investment fund. Within this type of fund, the ownership of the assets is divided into shares, which are assigned to the separate parties. Shareholders receive the returns of these assets by tracking the rising value of each one as it is traded. An ETF is considered a marketable security, and having this classification means that government authorities must oversee and approve them. Unfortunately, despite this requirement by the government, the entities in charge have yet to be able to nail down the regulations surrounding it.

As Kelly spoke, he discussed the fact that the SEC has made the choice to delay an application for a Bitcoin ETF that came from VanEck and SolidX, which means they will not be seen until September. However, Kelly said that the ETF application from Bitcoin specifically will not likely be handled until February, and said that there were four reasons that he sees a delay happening:

  1. Despite the issues that have arisen from the rejections, “[When] the SEC talked about fraud and manipulation, it wasn’t so much about preventing it, but how do they surveil it? Do they have an arrangement with other [globally or nationally regulated] exchanges [that would enable them to] surveil what’s going on?” he questioned.
  2. The SEC does not think the future market has enough maturity, since they have been around less than a year. However, the quick evolution leads Kelly to say, “[As of] April, you’re starting to see a big increase… about an 85 percent growth rate. If you extrapolate that out, by February 2019, you’re going to have a very robust market here.”
  3. The launch of a global ecosystem of regulated digital assets was recently announced by the Intercontinental Exchange, which would support both crypto and the derivatives market, making it important to the SEC’s decision.
  4. The SEC plans to go over the recent rejections, along with the parties within the SEC who are now disagreeing with their rejections.

As these reexaminations occur, Kelly believes that the “sentiment change” will be responsible for pushing the SEC into the approval of other ETFs in the future. He sees the lack of selling off in the market as a sign that ETF approvals will be coming.

At the time of this article, which is 10:10am PST on August 24th, Bitcoin is trading at $6,601.86, which has increased by 1.93% within the last 24 hours. Their current market cap is approximately $113.7 billion.

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