A lot has altered in the Bitcoin space since the Winklevoss Twins’ due Bitcoin ETF was deserted in Mar of last year. Let’s look at the 3 biggest reasons because the SEC could now give the immature light subsequent month.
‘We strongly titillate that this ETF get approved’
Earlier this week, Bitcoinist reported that the Chicago Board Options Exchange (CBOE) has filed for a due order change to list and trade shares of Van Eyck Investment and SolidX‘s Bitcoin ETF, dubbed “Bitcoin Trust.”
The notice was published on Jun 26 and page 51 of the document reads:
Within 45 days of the date of announcement of this notice in the Federal Register or within such longer duration (i) as the Commission might suitable up to 90 days of such date if it finds such longer duration to be suitable and publishes the reasons for so finding[…]
In other words, the indeterminate date for the SEC’s preference is Friday, Aug 10 — though, a 45-day prolongation is possible. This means that a preference should be approaching no after than Sep 24.
Most responses so distant seem to be in preference of a Bitcoin ETF. For example, President of LogicBox, Inc. Jeremy T. Goemaat writes:
I strongly support the inventory and trade shares of SolidX Bitcoin Shares … This account seeks to aim high net-worth investors, so we do not see a risk to sell investors. To to [sic] contrary, we think and ETF that is corroborated by tangible bitcoins contra futures, is much more healthy for the marketplace and will yield more stability.
Travis Williams writes:
I advise movement be taken to start commendatory ETFs contra inaction which appears to be more deleterious to investors.
Ryan Donohue writes:
We strongly titillate that this ETF get authorized to vigilance more businesses to get concerned with more law and infer this marketplace protected for everybody looking to get involved.
The open comments can be review here.
3 Reasons Why This Time It’s Different
1. Bitcoin has exploded in price
Most people in the Bitcoin space didn’t have high hopes for capitulation when the Winklevoss Twin’s COIN Bitcoin ETF was rejected in Mar 2017. What followed was a dump in cost that peaked up to an all-time high $1,350 back to underneath $1,000 — a beast move, at the time.
Today, the cost 00 is 6 times larger and was almost twenty times larger at the rise in Dec 2017. Meanwhile, the market cap of Bitcoin is still over $100 billion — positively no small cube of change that the regulators can’t omit for long.
2. Custodial services
Traditional investors have mostly refrained from cryptocurrencies mostly because they are investors — not Trezor-clutching ‘hodlers.’
Luckily, custodial services are now apropos a thing for institutional investors, with Coinbase and the Swiss Stock Exchange being just some new big names who will now offer custodial services for their clients.
3. Regulatory Clarity
One vital reason for last year’s rejecting was that Bitcoin markets were “unregulated.”
“Based on the record before it, the Commission believes that the poignant markets for bitcoin are unregulated,” it explained.
Last month, the SEC itself supposing serve clarity when it announced that Bitcoin, Ether, and other decentralized cryptocurrencies will not be personal as securities. Meanwhile, the IRS has even launched an ubiquitous bid to locate taxation evaders who use cryptocurrency.
Bitcoin ETF ‘A Distinct Possibility’
All of this suggests that banks and the supervision are all looking to get a square of the expanding pie, and a regulated exchange-traded account would positively assistance in this regard.
CEO Jan outpost Eck of Van Eyck Investment and SolidX also remarkable that the Bitcoin Trust’s “insurance component” would assistance strengthen investors opposite the risks of “sourcing” and storing bitcoin.
Meanwhile, Andy Hoffman of CryptoGoldCentral.com believes that the latest filing by the Cboe has combined a hum notwithstanding the stream bearish trend of cryptocurrency markets.
“The hum seems to advise it has a probability of being approved,” ” writes Hoffman. “And given that Bitcoin futures have successfully traded for more than 7 months; with BTC’s market cap stubbornly holding above $100 billion since November; we clarity that SEC capitulation is a graphic possibility.”
If the SolidX Bitcoin Shares ETF is authorized Aug 10th, it will expected catalyze a large blast of the Bitcoin cost – and with it, the cryptocurrency space in general.
Will the Bitcoin ETF be authorized subsequent month? Share your prophecy below!
Images pleasantness of Shutterstock, Bitcoinist archives.
Article source: https://bitcoinist.com/3-reasons-sec-bitcoin-etf-next-month/