There has been a serious move for the approval of Bitcoin Extended Traded Funds (ETF) by the Security and Exchange Commission, SEC. But what would likely be the end result of approving Bitcoin ETF, will it unleash or cage the bull from running?
Bitcoin ETF approval will definitely trigger off a high bull run for the market. ETFs are investment vehicles which enable a prospective investor to play around in a given market without the risk of buying a particular asset.
ETFs are treated as securities by the SEC, they track the trend of investments like stock, gold or cryptocurrencies without investors buying into them directly. ETFs are protective tools for cautious investors, they help mitigate investment risks and allow investors full exposure in trendy markets.
Cboe has been relentless in their joint effort with VanEck and SolidX to launch the first US Bitcoin ETF. On Wednesday, January 23rd, SEC announced the withdrawal of the proposed rule change by BXZ exchange which was filed on the 20th of June, 2018 by Cboe and BXZ.
The proposal was withdrawn because the US government was shut down. On Thursday, January 31st, VanEck digital asset strategy lead, Gabor Gurbacs announced that the same proposal was filled again on 30th January.
This proposal will allow Cboe BXZ exchange to list shares of bitcoin ETF trust, its approval will cause an injection of fresh funds into the crypto space by investors who had adopted a sit on the fence approach due to market volatility.
The ETF will lift the bar keeping new investors from coming into the crypto space due to lack of stability and regulation. It will help remove all the bottlenecks hindering investors from having full exposure in a regulated bitcoin environment.
The proposal is yet to be published in the Federal Register, once done, the days will start counting for the SEC to take a decision whether to approve or not.
ETFs will create a greener picture of the crypto space which had been like a time bomb to investors who wouldn’t want to stake their hard earned money on high-risk investments. As the demand for investment increases, the bull will surely run because prices will rise.