Yesterday, the Securities and Exchange Commission (SEC) has published three orders rejecting 9 bitcoin exchange-traded fund (ETF) proposals. It's a pretty long list.
This week the market had a short-lived burst in price in anticipation of the decisions from $6400 to a high of $6899 (USD) and then correcting right back to the $6400 range today as though the market had no genuine belief that those applications would pass.
The VanEck SolidX Bitcoin Trust seems to be the most likely candidate as the first successful Bitcoin ETF and is due for decision at the end of September, but can (and is highly likely to) be delayed until the final date in February 2019.The language of the rejections to date presents a hopeful tone, stating the SEC "emphasizes that its disapproval does not rest on an evaluation of whether bitcoin or blockchain technology more generally, has utility or value as an innovation or an investment."These words are in accord with SEC commissioner Hester Peirce assertion that it is not the SEC's role to be the gatekeeper of innovation. They seem to be waiting for certain infrastructure to be available for the surveillance of potential market manipulation before giving out that the elusive ETF approval.
A Bitcoin Exchange-Traded-Fund is a fund that owns underlying assets, (in this case, Bitcoin), and then divides the ownership of those assets into shares.Example: If the fund owned 20 Bitcoin, and was divided into a total of 10 shares, of which Alice owned 1 share, then she'd have indirect ownership of 2 Bitcoin. The important distinction is that it can be traded like shares on the stock market.This can play a significant role in pushing up bitcoin's price because currently, institutions don't have an easy way of gaining exposure to bitcoin without having to deal with the physical custody of the private keys. This will finally open the doors for institutions with billions in assets under management to add 1% of bitcoin to their portfolio as a non-correlation asset.
Jackson Zeng is the COO at Caleb and Brown is available to guide new and seasoned investors.About Jackson Zeng:Jackson has five years of trading experience in the cryptocurrency space and founded Bit By Bit Capital, one of Australia�۪s first private trusts investing in cryptocurrency.
Call Jackson on +61 1800 849 149 or Contact Us to discuss further.Image source: Toshi Times
Caleb & Brown was founded in 2016 to become an outstanding cryptocurrency brokerage firm. We give you rapid access to large volumes of Cryptocurrency at a spot price via a trusted entity.
