SEC Bitcoin ETF Approval Requires These Exchange and Ecosystem Changes First

SEC Bitcoin ETF Approval Requires These Exchange and Ecosystem Changes First

The SEC hasn’t held back its disapproval for a Bitcoin ETF. At least three attempts by different companies have been denied – including the Winklevoss twins, ProShares and Direxion – each of whom are successful traders. The time for an ETF is near, but it’s not right just yet. According to the SEC, cryptocurrencies need to give more power to data providers. They require that data should be allowed for consolidation to redistribute quote information. Until the exchanges are more transparent with open data pools, it’s likely an ETF won’t be given.

Bitcoin has quality liquidity already, and quotes like the SEC wants can be found on specific platforms. But they aren’t across the board, BTC differs from ETFs, it’s a fast-paced, fully functional spot market – that is if someone were able to pool data for analytics – which is exactly what it will take to meet the demands of the SEC. There are a few companies out there who provide software to help calculate odds in real-time, for finding the best price they can or specific offer. CoinRoutes software is ideal for finding out the right numbers. If liquidating enough Bitcoin for a real ETF in the future is possible, they are the ones who can figure it out.

Real-time data is used to calculate prices with the software, so clients can determine what action should be taken next with their Bitcoin, whether to buy or sell. Different altcoins can also be analyzed with CoinRoutes as well to figure which ones are best to work with at the most opportune moment. By using the analytics platform, it’s easy to see that Bitcoin is nearly ready to be approved for an ETF. The cryptocurrency has the superior liquidity to any other token, making it suitable for the approval.

ETF processes are different than that of traditional cryptocurrencies. There are precise methods used in the stock market when dealing with them, not to mention the assets that are backing them as well. Investors use a collection known as basket shares to make an ETF and after can redeem it to collect any dividends that are supporting it. Redemption units as they are called the ones used to create the ETF. Varying in size, they are usually worth $5 million or less when collected. Making this process work for Bitcoin would be reasonably simple, the available software would allow a commodity backed ETF to be created. To effectively make the process work, users would even be able to use CoinRoute to see the liquidity for BTC sizes backing the ETF. There are a lot of numbers that would have to be calculated but doing so would follow the same basic principles as that of making an ETF backed by BTC.

What do you think? Is the world ready for a Bitcoin ETF? Tell us your thoughts in the comment section below.

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