Future Approval of First-Ever Bitcoin ETF will Change Entire Cryptocurrency Ecosystem

2018-10-23 21:18

The concept of a Bitcoin ETF has long been one of the most sought-after potential future of the crypto markets. An ETF is an Exchange-Traded Fund, and it could be the key to the entrance of far more institutional players into the growing industry and its exchanges. ETFs allow traders to bet on the outcomes of any given price trend in Bitcoin without physically holding the volatile cryptocurrency.

This could help to solve one of the most significant problems barring the large-scale institutional adoption of cryptocurrency by the biggest players in the game: a lack of faith. Big investors are enticed by security and liquidity, two things which the current cryptocurrency industry, a proverbial wild west of financial asset trading, simply might not be able to provide. When an institutional investor wants to hold the currency, they would be taking the risk of volatility, hacking, or the crashing of the relatively new exchange in which they place their funds.

Still, institutional investors are beyond interested in the prospect of making billions off of the crazy world of cryptocurrency, especially the massive Bitcoin. The volatility of the cryptocurrency markets is dangerous, but can also provide the savvy institutional player with the perfect conditions to facilitate a high-risk, high-reward trading portfolio.

Bitcoin Boom Time

Following a Bitcoin ETF, experts predict that the price of the asset could skyrocket following the acceptance of an exchange-traded fund for Bitcoin. A comparative example from which some analysts draw their potential gains comes from 2003, when the price of gold jumped significantly when there was introduced an exchange traded fund for the commodity. Following this decision, the ETF market for gold exploded, and its original host, GoldShares by SDPR, is worth over USD $35 billion.

Crypto professionals speculate that similar gains would be seen by the Bitcoin market if the SEC were to finally accept one of the hundreds of potential offers from private entities looking to create a Bitcoin ETF for their clamoring institutional investors. The introduction of more institutional money from big Wall Street names would surely occur following an ETF proposal acceptance by the SEC, and this could mean major changes for the crypto space, including a bullish market for Bitcoin.

A History Of Failures

The road to a Bitcoin ETF has not been an easy one. So far, the SEC has not accepted one of the many cryptocurrency (Bitcoin) ETF proposals in the past two years. Though they have occasionally postponed a decision rather than immediately choosing to reject, the regulator has been slow to embrace any offer by a major company to create the profitable Bitcoin ETF.

One of the biggest problems barring the SEC from accepting a BTC ETF proposal is their outlined problems with the security involved in the process. In order to submit the golden successful ETF proposal, a company needs to be able to convince the SEC that their proposal has a way to keep the funds of institutional investors safe, while still allowing them to securely invest in the cryptocurrency.

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etf future bitcoin institutional players far entrance

Источник: bitcoinexchangeguide.com

etf future → Результатов: 35


SEC Commissioner: ‘No Reason’ Not to Allow Bitcoin ETF

US SEC Commissioner Heston Peirce — one of the four SEC commissioners currently considering the future of a potential Bitcoin ETF — publicly announced that there is “no reason” why the regulatory body would not allow the product to be approved Peirce, who recently published an official statement of dissent regarding the recent SEC rejection […] The post SEC Commissioner: ‘No Reason’ Not to Allow Bitcoin ETF appeared first on CryptoSlate.

2018-8-3 08:00


Wall Street’s Crypto King to CNBC: Institutions Are Afraid to Be the First Investor in Bitcoin

Bart Smith, aka Wall Street’s Crypto King, went on CNBC’s Fast Money recently and gave positive predictions for the future of Bitcoin. Smith, who is head of digital asset at Susquehanna, appears to not be troubled by Bitcoin’s recent downturn nor the recent denial of the proposed Winklevoss Bitcoin ETF by the SEC. Smith attributes […]

2018-8-3 07:29


Фото:

Expert Claims That Bitcoin Will Rise 6000% In 6 Years, Seriously

As Bitcoin starts to retreat and as the markets start to balance, we may all start to be feeling a little less optimistic about a potential looming bull run. We do know that this is mostly likely down to the SEC decision to reject the Winklevoss application for a Bitcoin ETF but regardless of what’s caused it, it’s happening and unfortunately, there’s not a lot we can do about it at present.

2018-7-27 16:00


Bitcoin [BTC] still at future regulatory risk? Tom Lee discusses

On July 24th, Fundstrat’s Head of Research, Thomas Lee was featured on CNBC Futures Money for his opinion on the recently charged bull-run by Bitcoin. The market strategy expert discussed the Bitcoin year-end price target, emerging possibilities from the regulators’ end and the institutional investors’ next move in the wake of an ETF. On being asked […]

2018-7-26 02:10


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