Bitcoin ETF decision: the chances are

On the 14. October: on this day, The U.S. securities and exchange Commission must take a decision on the Bitwise Bitcoin ETF. What are the chances?

By Phillip Horch
8. October 2019BTC$8.542,39 -0.29% part Facebook Twitter LinkedIn xing mail

While the Bitcoin recover of the course up to date from the recent setbacks, it seems, is in Overseas is an important decision. To 14. October is supposed to inform the U.S. securities and exchange Commission (Securities and Exchange Commission, SEC) about whether a stock exchange is approved-traded Fund (Exchange Traded Fund, ETF) for the biggest of all crypto-currencies. This is an application of Bitwise received by the beginning of the year to the authority.

What is a Bitcoin ETF?

An exchange-traded Fund is an investment Fund traded on a stock exchange is the first. In this case, one invests not directly in an asset class. Rather, the ETF pays a Pro rata share of ownership of a special class of assets. In other words: a Bitcoin ETF investors would leave their capital to an asset Manager. This is investing in a Bitcoin ETF. The access to crypto-currencies would thus be available to a wider audience is possible.

Therefore, the hope of many investors that a registration could have a positive impact on the Bitcoin price due to easier access and more people to invest. In addition, approval is required by the SEC to indicate more security. But in the past had larger concerns.

the concerns of The SEC

Above all, a common Argument, whether it is a matter of concern that the asset class BTC in an unregulated Wild-West-located environment. Always re-emerging rumours of manipulation of the Bitcoin price, and fake trading volumes, fuelled these concerns. Also, the safe storage of crypto-currencies was always an issue. Finally, it comes to trading platforms for crypto-currencies to security problems.

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In a recent Interview, Matthew Hougan, Global Head of Research at Bitwise expressed now, with the upcoming decision by the SEC. In his opinion, the crypto-developed Ecosystem in just the last two years. Therefore, the chances of admission are increased significantly:

You need to be aware of what has changed in the Bitcoin market in the last two years. Two years ago, there were no regulated depositories in the Bitcoin market, today there are almost ten. This includes big names such as Fidelity and Coinbase belong. You have hundreds of millions of US dollars to hedge the company's [...]. [In addition,] there were [two years ago] not a regulated crypto-Exchanges, today six out of ten major Exchanges are regulated and have the technology to monitor the market,

so Hougan against the US news channel CNBC.

In addition, according to Matt Hougan, had become the overall market more efficient, which, you know, alone, at the inlet of institutional investors. Furthermore, Bitwise've been in close contact with the authority itself and the data and research results submitted:

I think we are so close as never before, to get a Bitcoin ETF is approved.

I placed the "Wild West atmosphere" in the scene a little. So Hougan more, recognize you, especially at the Bitcoin Futures on the Chicago Board of options exchange (CME). Alone the daily Futures volume of 200 million US dollars, signaling an increased institutional interest. The crucial question that must be put to the SEC, therefore, whether this market is big enough to allay their concerns.

The SEC's final bitcoin ETF ruling is on deck. Here's what investors can expect

watch This Video on YouTube.Decision-making can no longer nThe SEC will postponed has postponed decisions to Bitcoin ETFs in the past several times. In the case of Bitwise not is now possible; the authority must, in the 14 to of the. October the request to the judge.

Even in the case of a refusal, is Bitwise, however, optimistic. Bitwise not expected, at least, recommendations for action:

you will give us detailed action recommendations. At least, we hope that you will give us detailed recommendations for action. Especially in terms of what questions were answered successfully [...].

Whether it is allowed or not: The mood has improved. The Jay Clayton of the SEC itself confirmed recently. Clayton said in an Interview:

There is work yet to be done. These are not trivial questions [to answer]. How can we know [...], how we crypto-Assets [right] can store? This is a key question. An even more difficult question: [...] How can we be sure that these courses are not affected by strong Manipulation? There is already progress. But [applicant] you must answer these difficult questions, so that we [the SEC] to feel good, such products allow.

Bitwise-competitor VanEck has managed to smuggle a stripped down, exclusive Version of a Bitcoin ETF past the watchful eyes of the authority. A greater signal effect is still.

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