Bitcoin may have been performing well in the first few days of the year mainly because of Bakkt’s launch and the fact that the US Securities and Exchange Commission is already about to make a decision about the Bitcoin ETF application submitted by VanEck.
Many believe that a Bitcoin ETF could propel the value of the cryptocurrency along with other altcoins because it is going to make it easy for institutional investors to participate in the market. Will there be a Bitcoin ETF soon?
The Winklevoss twins are making a bet on the long-term performance of Bitcoin. They claim that “We believe Bitcoin is better at being gold than gold. If we’re right, then over time the market cap of bitcoin will surpass the $7 trillion market cap of gold”. Tyler Winklevoss also added that “We believe in the long game”.
The Winklevoss twins also commented on the possibility of a Bitcoin ETF. Despite being rejected for two times already, the twins said that they “are committed as ever” to making a Bitcoin ETF “a reality”.
Prone to Market Manipulation?
One of the things that stopped the approval of Bitcoin ETF is the possibility of price manipulation. A few months ago, Jay Clayton mentioned that the lack of surveillance tools to monitor the possibility of price manipulation is one of the reasons why the agency hesitated in approving the Bitcoin ETF. Clayton also commented that the agency is only going to be comfortable approving if the industry makes these drastic changes.
Japan’s Bitcoin ETF?
The Financial Services Agency (FSA) of Japan has been considering to have its own version of a Bitcoin ETF. Now, could this have an impact regarding the possibility of a Bitcoin ETF in the US? Will the US Securities and Exchange Commission rule in favor of having a Bitcoin ETF in case Japan makes its move?
The probability remains low for the US to have its own Bitcoin ETF. In fact, even pro-crypto SEC commissioner Hester Pierce commented that investors shouldn’t wait for the Bitcoin ETF since it may take years before the commission decides to have Bitcoin ETF approved. However, the silver lining is that a VanEck ETF, regardless if it is going to be approved or not can bring clarity into the niche.
Will There Be a Bitcoin ETF Soon?
VanEck ETF application is quite different from the other applications mainly because it makes use of over-the-counter (OTC) market, which has more volume and trading activity compared to the Bitcoin futures.
In reality, everything is still up in the air. Evidenced by the price movement that has kept Bitcoin above $4,000, there could actually be a sentiment in the market hoping that a Bitcoin ETF is going to become a reality soon. Japan is one of those countries with the most progressive approach to the crypto market. And this could actually mean good news for those hoping that the SEC is going to approve a Bitcoin ETF.
So far, the promise of institutional investors entering the market is still not becoming a reality. Despite the regulatory changes in 2018, Regulatory clarity is still not seen in the current crypto landscape. Do you think there will be a Bitcoin ETF soon?