Part of the reason why Bitcoin is bullish is the rumor that the US SEC is about to approve a bitcoin ETF soon. Could this really happen? Just a few months ago, the crypto space lacks regulatory measures.
Though nothing is final yet, there are a number of players that are already interested. One of the newest to jump into the frenzy is San Francisco-based asset manager Bitwise. The company decided to file with the US Securities and Exchange Commission on Tuesday for an ETF. This crypto ETF will track ten cryptocurrencies in its basket which basically includes Bitcoin.
Will There Be An ETF by August?
Though nothing is quite final yet, there are rumors circulating in the crypto world that we might actually see a Bitcoin ETF by August. The rumor has it that VanEck and SolidX proposals for an ETF are about to be approved.
Matt Hougan who is the global head of research for Bitwise mentioned that “We’re joining the queue”. He also mentioned that “The market is professionalizing in a direction that the SEC would allow a crypto ETF onto the market”.
This isn’t the first time that someone attempted to apply for a crypto ETF. In 2017, Cameron and Tyler Winklevoss who are the founders of the crypto exchange Gemini attempted to do the same. Unfortunately, they were turned down by the US SEC.
In November, Bitwise was able to launch the very first crypto index fund. However, it wasn’t registered with the US SEC. The index is technically considered a private placement vehicle. It has around $1 million in liquid assets.
Hesitations on ETFs
The road towards approving ETFs isn’t exactly easy. There is hesitation on the part of the Securities and Exchange Commission regarding ETFs. One of the reason is security concerns. Last year, there were a number of crypto-related fraud that has been caught by the US SEC. And with this, US SEC was able to stop ICOs and post investor bulletins.
Is the SEC ready to provide a crypto ETF? If you will look at the current crypto atmosphere today, regulators are now more open to the crypto market. The European Parliament not only mentioned that regulators are making a mistake if they decided to ban cryptos, it also mentioned that digital currencies can be used as an alternative to money.
You also have countries today such as Japan that are making strides in order to implement positive changes for the market. They have come up with rules that made it strict for crypto exchanges to operate in order to prevent hacking incidences.
Crypto ETF getting approved means that Bitcoin is going to have another bull-run. Looking back to what Tom Lee mentioned especially during the days when Bitcoin was struggling in price, his prediction that Bitcoin is about to surpass the near $20,000 all-time high could actually become a reality in the coming months.
Regulatory clarity has significantly brought this recent trend in the market. There is even a prediction that speculates the entire crypto market to reach $800 billion. Currently, the crypto market is at around $300 billion.