Asset Manager Believes SEC Will Approve BTC ETF in 2019
The community predicts that the date for the first legal BTC ETF to be established will be in 2019. The main focus at the moment is the pending request of an ETF into the US SEC. There have been no official announcements yet, but most of the community believe that the US can not avoid a BTC ETF anymore.
An ETF is any kind of fund that is listed on an exchange. At the moment, ETFs trade currencies that are under the regulation of the CFTC or the SEC. Cryptocurrency is not considered legally fit to be categorized under any of these conditions. However, since there is no way to regulate cryptocurrency assets as a whole, it is only possible to have a BTC ETF if the shareholders’ interests are registered as securities.
The main reason behind the SEC’s reluctance to approve of a BTC ETF is that digital assets are impossible to regulate. This is not the first time the SEC receives such requests. For instance, in March 2017, the Winklevoss twins submitted a similar request and was denied. Then, they sent another one in July 2018, only to be denied again. However, people still continue to send the SEC requests after reviewing the previous reasons for denial and addressing them.
Michael Graham and Scott Suh issued a document stating the possibility of a BTC ETF. Adding that it is a great opportunity for new investors in crypto. They also said that one of the most intriguing applications they have received was from VanEck/SolidX. Some believe that the existence of a BTC ETF would change the whole market and resume the bullish trend. Others, however, say it would either be a huge milestone for the advance of the BTC, or a short-term success until a negative event causes the whole process to stop.
The whole market is anticipating the SEC’s decision at the moment. The bottom line is that an ETF is probably not going to be approved in 2018, especially with the rejection of the Winklevoss twins’ proposal. That being said, the VanEck/SolidX proposal should be reviewed and September, making people anticipate a more realistic date for an ETF to be around 2019.