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From the start of 2018, the approval of a fund traded on the Bitcoin exchange (ETF) has become the catalyst for the next crypto bull run in the minds of many investors on the market.
A bitcoin ETF could certainly increase the liquidity of the dominant cryptocurrency in the US market, as it would allow institutional and retail investors to invest securely and efficiently in the asset class without conflicting with local regulations.
However, according to the US Securities Security and Securities Exchange Commission (SEC) Hester Peirce, the approval of a Bitcoin ETF remains uncertain and may take days or years.
Do not wait
At a conference on cryptocurrency in Washington DC, the commissioner said that he is working with the commission for the approval of a Bitcoin-based ETF and to convince more commissioners to be more open to digital resources.
Despite Peirce's optimistic stance towards the emerging asset class, the SEC has five commissioners and a majority decision is required for the ETF.
Peirce He said that investors should not wait for the SEC decision as it may take a long time before the SEC comes around and approves it:
"Do not hold your breath, I pay attention to people not to live or die when a crypto or bitcoin ETF is approved." You all know that I'm working to try to convince my colleagues to have a little more of an open mind when it comes to [crypto]. I'm not as charming as some other people. "
The commissioner added that a Bitcoin ETF could be approved tomorrow or in ten years, there is no time frame that the commission can provide on it. However, he stressed that the institutionalization of the crypt will inevitably occur, as the infrastructure surrounding the asset class grows stronger over time.
This week, the world's second largest equity market, Nasdaq, and the fourth-largest Fidelity asset manager, managed a $ 27.5 million fund for a crypto-currencies exchange and futures market called ErisX, demonstrating confidence in improving # 39; infrastructure in the cryptographic market for institutional investors.
Interesting variables
In July, the SEC officially rejected the Bitcoin ETF deposit of the Winklevoss twins because it was based on a cryptocurrency exchange to find the base price of the currency. In the following month, the SEC rejected eight deposits of Bitcoin ETFs that used the market of future CMEs and CBOEs to find out the Bitcoin price.
VanEck's deposit of ETFs, which has achieved significant market expectations on the market, mainly thanks to VanEck's decades-long track record in the traditional financial sector, univocally uses the over the counter (OTC) market to base the price of the cryptocurrency that supports ETF.
As such, the ETF VanEck implements a different approach in contrast to the nine ETFs that the SEC has had to repel in the last five months.
If the OTC market is substantially larger than the cryptocurrency trade market as they have supported several reports over the last year, then it may lead the SEC to re-evaluate the possibility of approving an ETF based on a completely new market.
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