Bitcoin ETF (exchange traded fund) is coming, says Bitwise Investment’s Matt Hougan. As per Matt, the Securities and Exchange Commission in the United States has a slightly lenient view of a Bitcoin ETF compared to the 2018’s advanced stand.
He feels that the industry is closer than ever to witness the launch of a Bitcoin ETF. Though the SEC is yet to respond to the official proposal submitted by the Bitwise Asset Management regarding launching a Bitcoin ETF, the potential is high. A decision is expected on the proposal latest by October 14.
BNY Mellon has been chosen by Bitwise to undertake its transfer agent duties for the proposed Bitcoin ETF. Recently, Cboe BZX Exchange also decided to back out after proposing a SolidX bitcoin/ VanEck exchange-traded fund.
Will a Bitcoin ETF ever see the light of the day?
As per Mr. Hougan, the change is SEC’s stance can happen due to some very plausible reasons. A prominent reason is that the Bitcoin market had no insured custodians a few years ago. Now, there are more than ten such regulated firms, including Fidelity or Coinbasea that boast of a substantial client base. Thus, custody matters are well taken care of today.
Regulations have also improved in the past year with more exchanges now adhering to the authority mechanisms. New York Department of State now monitors more than six major cryptocurrency exchanges with advanced market surveillance technologies.
Additionally, the regulated crypto futures market today deals in close to two hundred million dollars ($200M) every day. The bitcoin market has evolved substantially in the past two years incorporating technological advances, regulatory protocols, and global financial trends.
Increased market surveillance means a safer Bitcoin ETF
Improved surveillance and regulatory features mean that authorities can remain vigilant and proactive. Research papers submitted by Bitwise reflect the evolution of the market towards safety and regulatory provisions. The company believes that cryptocurrency has presented an exciting wealth generation opportunity in decades.
Bitcoin has performed exceptionally well in the past five years compared to traditional assets. Despite the growth, institutional investors have not been able to tap into this viral trajectory. A Bitcoin ETF is perhaps the best way for such entities to take part in the crypto story.