- Why Bitcoin ETF? Safe simple secure access for everyday investors to wealth generation
- How far we have come in these two years?
- The key is the growth of regulated CME futures market
So, the fate of one of the last Bitcoin ETF applications is upon us. At least, it would be the final decision as Matt Hougan of Bitwise Investments in his interview, didn’t talk about postponing the application like SolidX-VanEck.
Is there any chance that after a year and a half later 2019 would be seeing the Bitcoin approval after all? That’s to be seen.
Now sometime before Monday, the SEC has to give its decision with no more ways to postpone it, as such,
“it should be a very exciting week.”
First, Why Bitcoin ETF?
“The opportunity that's taking place in Bitcoin crypto and blockchain today is one of the most exciting wealth generation opportunities in the world,”
as we can see Bitcoin is the “single best performing asset over the last five years,” Hougan explained.
While big institutions have safe secure ways to buy Bitcoin today in private funds, Hougan said the same is not possible for regular people. And Bitcoin ETF would allow everyday investors to have safe simple secure access to the wealth generation taking place in Bitcoin and crypto.
Now, How Far we have Come in these Two Years?
Hougan is positive and excited as he points out the growth the market has seen in these last two years.
“There were no regulated insured custodians in the Bitcoin market,”
but today there are about ten and they are big names, said Hougan.
Fidelity and Coinbase are two of those names that have hundreds of millions of dollars of insurance from firms like Lloyds of London. Moreover, six of the ten big crypto exchanges are regulated by the New York Department of State with market surveillance technologies in place.
Unlike the “one-sided inefficient market,” today we have 200+ million dollars in volume and regulated futures — which Hougan said is among the most efficient institutional markets in the world.
Because of the “evolution of the Bitcoin market over the last two years” which is from night to day he believes,
“we're closer than we've ever been before to getting a Bitcoin ETF approved.”
The Key is the Growth of Regulated CME Futures Market
However, the issue of market surveillance and market quality is still the one that people are going to be focused on. Bitwise has approached this issue in two ways, with a lot of research on the real nature of the Bitcoin market and the regulated CME Bitcoin futures market which he said is the
He further points out how the futures market is
“about twenty to thirty percent the size of the total Bitcoin spot market and that matters because one of the things the SEC said (…) if there is a large significant regulated derivatives market trading side by side with the Bitcoin spot market that can solve the problem of market surveillance.”
Now, the question before the SEC is whether the market is big and significant enough to solve their fears of the unregulated nature of the spot BTC market.
Now, if not approved, Hougan is expecting detailed guidance from the SEC and if
“we're all the way in or still a few yards outside.”