The Bitcoin ETF story was thrown into another spiral on 24th August when the Securities and the Exchanges Commission of the United States of America decided to review the rejection of the nine Bitcoin ETF applications it had rejected on the previous day.
On Wednesday the SEC had completely disapproved a total of nine inquiries from three companies to bring Bitcoin-based ETFs into the market. A few hours after the rejection, the SEC surprised everyone by releasing letters stating their intention to review the decision, having delegated authority to take action on the application.
Post the review decision, CNBC’s Brian Kelly gave his two cents on when the cryptocurrency funds could finally come to the market. Brian stated that the sentiment of the users after the ETF rejection was that of downright disappointment, but assured them that they could hold on to an expected timeframe when Bitcoin could have its ETF fix, February 2019.
According to him, February of next year provides the perfect setup for the ETF adoption to be fully realized. He stated that September would be the time when the VanEck decision on Bitcoin will come to fruition, which will set the trajectory for the adoption by the SEC. The company will undergo its fourth attempt at obtaining a Bitcoin ETF, which most experts think will happen by the end of September.
Kelly went on to say that the SEC is still fidgety on the concept of Bitcoin and cryptocurrencies in general because it does not have a surveillance system in place to monitor the workings of the industry. He added that adoption of ETF will be an issue until the governing body is able to scrutinize the moves established by players in the cryptocurrency industry.
He went on to add that the futures market is still leaning towards the interest of the largest holder and points out to an 85% increase in the futures market, which is the perfect launch pad towards February 2019. The other added advantage that will push the ETF acceptance machine forward is the upcoming NYSE based cryptocurrency exchange called Bakkt.
Moreover, it is set to become the first regulated market for cryptocurrencies. The preceding factors, according to Brian Kelly, show that the community has come incrementally closer to the adoption of Bitcoin ETFs.
The financial guru went on to say that there is a sentiment change in society which will propel the market to the fantastic news in the first quarter of 2019. He also quoted the Hester Pierce tweets which were released after the review decision was made public. The tweets stated:
“The Commission (Chairman and Commissioners) delegates some tasks to its staff. When the staff acts in such cases, it acts on behalf of the Commission. The Commission may review the staff’s action, as will now happen here.”
Brian Kelly also gave his opinion on the implication of what would happen if the ETFs were approved, stating that it would be of monumental importance, giving the power back to the people. He also added that the primary demand for the ETF adoption comes from the retail investor as the institutional investors are still on the fence about the commodity. He was also open-minded to consider that there might be a small possibility that Bitcoin might not react to the ETF adoption, a scenario which he thinks is highly unlikely.
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