Possible Bitcoin ETF Raises Market Hopes as US SEC Opens Public Discussion for CBOE Fund License
The Bitcoin market has a source of optimism - the upcoming SEC decision on licensing the first Bitcoin ETF, expected on August 10.
A Bitcoin-based ETF has been proposed, then refused on regulatory grounds for years. But there is another round of hope, as the US Securities and Exchange Commission is expected to announce on August 10 its decision regarding the recent Bitcoin ETF license application by CBOE BZX Exchange, Inc.
The launching of Bitcoin futures last December was seen as one of the factors leading to an easier acceptance for the launch of an ETF.
An ETF would also mean a direct purchase of Bitcoin assets by institutional money, giving more legitimacy to Bitcoin (BTC) and potentially boosting prices. In 2018, ETFs are seen as an opportunity for a series of innovative investment instruments, related to anything from bonds to AI companies and even individual countries, as tracked by the ETF.com website. But cryptocurrency ETFs are yet to appear.
The SEC website has opened a discussion section for the upcoming ETF launch. The attitudes to the newly coming investment vehicle are worth noticing. One commenter, Kyle McDougall, stated that an ETF would mitigate the risk of exchanges, which are more difficult to use. However, he believes the ETF should be open to anyone, not just high net worth individuals:
“Remove the accredited investors restriction. Wealth is not a measure of intelligence and non accredited investors, believe it or not, actually have brains, too. Please open up this ETF to all investors. Then approve it,” he wrote.
An anonymous commenter is more skeptical:
“This is the biggest mistake since the creation of synthetic-CDOs.”
In the past days, with less than a month to the launch, the discussion has accelerated with more opinions. It is still probable that the ETF launch would be turned down once again, as Bitcoin investors predict:
Comments on the SEC website also pointed to the possibility that the ETF is seen as just one last push for the BTC price, from investors who bought at irrationally high prices, and want to trigger a similar bull run.
For the past few weeks, BTC prices sank once again, firmly below the $7,000 level. BTC trades on thinned out volumes of $3.7 billion in the last 24 hours. The prices sank to $6,198.96, as of 11:00 UTC, with a bigger slide happening on Thursday morning. BTC now sees about 39% of all trades performed against Tether (USDT), and the Japanese Yen has a share of 49%, according to data from Cryptocompare.
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