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Approval Of Bitcoin ETF Highly Unlikely In 2018, Canaccord

Canaccord Genuity is of the opinion that the approval of a Bitcoin Exchange-Traded Fund (ETF) seems highly unlikely in 2018. It is one of the biggest investment firms in Canada. Canaccord researchers Scott Suh and Michael Graham wrote in an official report that although the VanEck-SolidX Bitcoin Trust is considered by many as the most formidable candidate for a potential SEC approval, the SEC has extended its deadline till September 30. Thus, in all probability, they feel a decision may not be made until March 2019.

The researchers pointed out that other bitcoin-based securities have been available for trading on regulated exchanges as early as May 2015 in Sweden. Canada is also working towards the Evolve Bitcoin ETF, its own bitcoin ETF product.

Canaccord Reasons Why Bitcoin ETF Seems Unlikely In 2018

Canaccord points out that historically, the SEC has been quite reluctant towards approving ETFs based on emerging commodities and assets. This can be seen in the case of bitcoin especially with the rejection of the SolidX Bitcoin ETF and the Winklevoss Bitcoin ETF in 2017 and 2018 respectively. The SEC usually never prefers to publicly disclose their decision until the final deadline.

The Canaccord researchers feel that while the Chicago Board Options Exchange (CBOE), Bitcoin ETF and the VanEck-SolidX Bitcoin ETF have a high probability of being approved by the SEC. The commission is not likely to disclose its decision till February 2019, the final deadline.

As stated in the CCN report, the delay of this SEC decision could have a negative impact on the short-term price trend of BTC and the rest of the cryptocurrency market. The researchers also emphasized the fact that owing to the history of CBOE and VanEck in dealing with regulated U.S. markets and the SEC, their Bitcoin ETF is likely to be eventually approved by the commission.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]
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Jesmine Rahman holds 15+ years of professional writing experience of working with reputed Indian dailies like the Times of India and the Indian Express. She also holds a rich experience of working as a Senior Technical Content Specialist with a reputed IT company. for 10 years. She writes crypto news on OWLT Market.

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