Bitcoin ETF approval has faced many hurdles and been rejected quite a number of times in 2018. There are advisors who still think that ETF makes for a comfortable recommendation to ordinary investors.
Finance expert Ric Edelman said that it is virtually certain for the ETF to come, but the question remains when. The Securities and Exchange Commission (SEC) has several legitimate concerns regarding ETF and that’s understood as the industry still has to overcome certain difficulties. The SEC has long concern over the cryptocurrency market and how to regulate it. Firstly, bitcoin trading isn’t as secure as the other financial markets and lacks custody trading. Secondly, the SEC has no control over the bitcoin price manipulation as it has no governance over international trading platforms.
The editor-in-chief at ETF Trends Tom Lydon stated that they interview advisors and see pent-up demand for bitcoin ETF. Seventy-four per cent of these advisors say that they have spoken to their clients about this and advised that they need to step up whenever the Bitcoin ETF approval comes along as the money is going to go somewhere else, as published on CNBC.
“We’ve got some serious players. Fidelity has made a major announcement in the custody issue. We’ve got Kingdom Trust and a number of other very serious players on the custody side. I’m confident that in very short order VanEck or Bitwise will satisfy the custody concern to the SEC,” said Ric Edelman. The CBOE refiled an application for VanEck and SolidX Bitcoin ETF in late January and pulled out the submission a week earlier to the partial government shut down.
On February 11, Reality Shares ETF Trust has filed for registration statement with the US SEC for an ETF that will invest in bitcoin futures as part of its investment strategies. The fund is designed to provide investment exposure to global currencies, as mentioned on Bitcoin News.
Reality Share already has two blockchain ETFs in partnership with Nasdaq: The Reality Shares Nasdaq Nexgen Economy ETF (BLCN) and the Reality Shares Nasdaq Blockchain China Index (BCNA). The BLCN was incepted on January 20 and BCNA on June 20, both in 2018. Bitcoin ETF approval may be hanging by a thread for now but the idea isn’t far fetched for the near future.[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. ]