We’re probably going to get a SEC-approved Bitcoin ETF in the United States soon — finally. This comes from finance expert Dave Nadig, saying that a Bitcoin futures ETF will likely get SEC approval in the near future.
The Bitcoin ETF in the United States: A Slow and Steady Race for Approval
There are already multiple, mainstream investment vehicles based on Bitcoin’s value in Europe, finance publication TheStreet reported. So why don’t we have one in the US yet? It hasn’t been for lack of trying.
Among the most popular of the Bitcoin ETF attempts in the US was made by the Winklevoss twins — who became household names for their legal battle with Facebook founder Mark Zuckerberg.
The twins submitted an application to launch the Winklevoss Bitcoin ETF, and the move received a lot of fanfare, but the SEC ultimately rejected the request. The SEC chose to deny the application due to a lack of regulation in the Bitcoin industry, TheStreet reported.
More recently, investment management firm VanEck filed an application with the SEC to launch an ETF based on Bitcoin futures. Unlike the would-be Winklevoss ETF, this fund will invest in derivative instruments based on the bitcoin price instead of holding the coins themselves.
However, ETF.com CEO Dave Nadig told TheStreet that the current state of Bitcoin-based ETFs in the US is about to change.
“The race in the US is the race to see what gets approval first,” Nadig told TheStreet.
“Will it be a Bitcoin future or a straight up Bitcoin holding ETF? My bet is that we will see futures approved fairly quickly.”
Why is Nadig so confident? The ongoing changeup in the SEC’s administration could cause their opinions towards Bitcoin to change. However, Nadig told TheStreet that, while the SEC will very likely approve an ETF for Bitcoin, it will not be at the top of their agenda moving forward.
Will the Bitcoin Price Soar Following an Approval?
When the Winklevoss twins had their application rejected in March 2017, the bitcoin price took a pretty serious tumble — coming off a rally fuelled by hopes and expectations of an approval.
Thus, if an ETF for bitcoin gets approved, will the price skyrocket? History shows that major regulatory announcements from powerful nations tend to have significant impacts on the price, so a positive ETF ruling could very well trigger a bull rally in the bitcoin markets.
Such a rally would certainly be welcome to Bitcoiners, as fear over impending Chinese restrictions on Bitcoin have sent the digital currency’s price down as far as $1000.
Do you think we’ll see an ETF approval in the US any time soon? Share your thoughts in the comments below.
Images via SEC Union, FactSet