A Bitcoin exchange-traded fund is perhaps one of the most widely discussed financial instruments in terms of market impact. According to Gabor Gurbacs, there are at least six reasons for which a Bitcoin ETF is a good thing for the industry.
The Bitcoin ETF that Could
Throughout 2018 there were numerous Bitcoin ETF applications filed but, unfortunately, all of them were met with nothing but denial. It appeared that the position of the Securities and Exchange Commission (SEC) was as firm as it could get.
However, there was one application which pinned all eyes against it. The Cboe-filed VanEck and SolidX Bitcoin ETF application appeared to be the one with the greatest chances of approval.
However, in late January 2019,Cboe temporarily withdrew its application, only to refile it a week later. Apparently, the main concerns were related to the Government shutdown and the fact that it will see the application denied. Hence, the quick refiling, which puts the new deadline somewhere in October, given the fact that the SEC can delay its decision for no more than 240 days.
Gabor Gurbacs: a “Bitcoin ETF Serves the Public Interest”
Gabor Gurbacs, the Director of Digital Asset Strategy at VanEck, tweeted that he believes a Bitcoin ETF serves the public interest” in six different ways.
- Increased liquidity using the ETF Ecosystem
- Lower counter-party risk
- Better valuation & execution practices
- Separation of duties: trading, custody, valuation
- Transparent fees
- Established a compliance framework
It’s Not Just the Bitcoin ETF
While the approval of a Bitcoin ETF by the SEC will surely mark a serious milestone, it’s not the only important event in the field of cryptocurrencies which could get the waters moving.
Bakkt – the cryptocurrency trading platform created by the NYSE operator – the Intercontinental Exchange (ICE) is also waiting for regulatory approval to begin offering physically settled Bitcoin future contracts.
What this means is that traders will actually receive a bitcoin at the end of the expiration time of the contract, hence they’d actually own the underlying asset instead of just speculating on its future price.
The platform recently announced key vacancies.
What do you think about Bitcoin in 2019? Let us know down below!
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