On 27th June, the United States Securities and Exchange Commission [SEC] opened up the second round of opinions to assuage public opinion regarding the Bitcoin Exchange Traded Fund [ETF] filed by CBOE [Chicago Board of Exchange] global markets. Since then, there has been an upsurge of positive comments amounting to 10 times more than what the SEC had received in April.
Regarding the approval, a cryptocurrency enthusiast commented on the SEC website:
You need to understand that the whole world wants Bitcoin and Cryptocurrency, in general, to be legalized in the United States and in all parts of the world. ETF is a security and needs to be considered a security by the SEC.”
He continued to say:
“Bitcoin needs regulations and what better way to be officially viewed as a security by the SEC? American institutions need to see the future in Blockchain Bitcoin and Cryptocurrencies. The whole American community asks you to officially allow Bitcoin ETF to be traded.”
An ETF is essentially an investment fund traded on stock market platforms that hold various assets such as stocks, bonds, commodities and such. The reason they are preferred over mutual funds is due to the fact that their daily liquidity is extremely high with a low fee.
Winklevoss twins, the founders of the Gemini exchange platform, were the duo who’s proposal for a Bitcoin-based ETF was rejected by the SEC last year, citing reasons of volatility.
CBOE’s Bitcoin-based ETF’s popularity with cryptocurrency enthusiasts will perhaps influence US regulators to come to a positive conclusion and a consequent approval of the ETF application. The SEC is set to issue their verdict on 16th August [the date of publication in the Federal Register is 2nd July] and a positive ruling by the SEC for the ETF application would mean a bull run market and an influx of capital as a surge of institutional investors and speed traders would be ready to invest in cryptocurrency forums.
The Co-Founder and CEO of Bitmex exchange, Arthur Hayes during a CNBC broadcast is quoted to have said:
“We’re one positive regulatory decision away — maybe an ETF approved by the SEC — to climb through $20,000 and even to $50,000 by the end of the year.”
CEO of VanEck SolidX Bitcoin Trust; Jan van Eck in an interview with Bloomberg says:
“We believe that collectively, we will build something that may be better than other constructs currently making their way through the regulatory process.”
He further added:
“A properly constructed physically-backed bitcoin ETF will be designed to provide exposure to the price of Bitcoin, and insurance component will help protect shareholders against the operational risks of sourcing and holding Bitcoin.”
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