A new bitcoin ETF application submitted to the SEC may have just the right stuff for approval.
Several applications for bitcoin ETFs, scratch that, MANY applications for bitcoin ETFs have been submitted to the SEC over the past 2 years.
Every single one of them has been rejected by the SEC.
However, this time it might be different...
Van Eck Associates Corp. and SolidX Partners Inc. filed a request to list a Bitcoin-linked ETP (exchange traded product), which is basically the same thing as an ETF, to the U.S. Securities and Exchange Commission on Wednesday.
Why could this time be different?
The SEC claimed, in the past, that they had some concerns about the spot markets of bitcoin being unregulated and ETFs being tied to those markets.
However, this application says that prices will be tied to an index that tracks over-the-counter trading by U.S.-based institutions, which are regulated by the U.S. Commodity Futures Trading Commission.
The hope is that by tying prices to prices of regulated OTC trades, they can satisfy one of the SEC's main concerns.
They also will be gearing the fund towards institutinoal investors as opposed to retail investors which was another SEC concern.
The product will be priced at $200k per share, it will be fully insured on a 1 to 1 basis, and it will use cold storage for it's holdings, meaning keys will be kept off line.
Why this is interesting to me:
This product, if approved, is going to be physically backed with the coins.
Meaning that for every bitcoin ETP you can purchase, the fund will have one bitcoin in storage.
This is very different than the futures products that currently exist and also different than many of the other bitcoin ETFs that have been proposed.
This could really drive prices for bitcoin skyward if a couple of these funds take off.
Similar to what happened to the gold market when a couple large gold ETFs launched. The demand for gold shot up and prices soared.
Think ETFs didn't have much of an impact on prices?
The price of gold was around $300 when the first one launched in 2003 and rose to roughly $1,900 by 2011.
Currently gold trades for roughly $1,300 per ounce.
I would expect to see something very similar if a couple physically backed bitcoin ETFs/ETPs get approved and begin trading.
In my opinion it is only a matter of time before one eventually gets approved, and I would not be surprised if this one does.
Over time it will be available to retail investors as well, which will really get prices moving.
More about this proposed bitcoin ETP can be found here:
Stay informed my friends.
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Awesome. If a BTC ETF is approved, then other cryptos will follow into the ETF arena. At the very least, a proposed BTC ETF will get feedback from regulators that will help others formulate an ETF for other cryptos. Good progress.
Thanks for the promising news. I think Bitcoin is ready for some more attention now that it has become stronger from the crazy times in Dec and Jan. May Trace Mayer's 6th Bitcoin Network Effect take hold!
Good discussion; but you failed to mention that Gold’s rise was highly tied to “The Great Recession”. Something like that happening again would drive BTC thru the roof as well.
Let those trillions of dollars of retirement money flow into BTC. May we all be prosperous!
That sounds pretty good to me!
Check out this video just released from the SEC chairman. https://steemit.com/bitcoin/@cryptoeagle/sec-chairman-bitcoin-is-not-a-security-bitcoin-etf-meets-requirements-a-must-watch-video
ETFs are coming my friend!
I think so too. Thanks for sharing!
Thanks a lot for sharing this news...i love bitcoin. keep it up, upvote and resteemit done.
Nice information . I hope june will bring us good profits .
That is my hope as well. If history repeats we should be in store for a good next 30 days or so.
Let's see what happen, I hope everything will be good.
Informative they'll take that into consideration.
I think they will. Would not be surprised to see an ETF/ETP for bitcoin trading by end of 2018.
👍
Thanks for d good news
His studies and knowledge about money are very interesting, but I am pretty sure that he will soon give us a very good surprise, so he expects the good news. Thanks for sharing your opinion.
Sounds good!
Thank you for sharing such useful ideas and updates.
Logic says that would be a great product for bitcoins value appreciation. Exciting news, thanks!
If this gets approval will it effect the GBTC premium? Or since its $200,000 per share will not really matter...
I would make the counter argument, because of Gold ETF trading supply and demand is out of wack. Large holders,through massive leverage, are able to force the market into a specific direction, without the physical asset ever changing hands. Jim Richards in his 3 books, make it clear that centralized government has an invested interest to suppress gold. They've actually stated as mush throughout history. Have a look at Greg Hunter's work on Youtube, to confirm blatant market manipulation in the Commodity sector, and big banks admitting it. That said, EFT trading is a reality and will impact the crypto sector, once/if introduced fully. Thanks for the stimulating article, I love the gold sector. If your ever in the mood for some BTC TA, head on over. Cheers.
There some truth to that, though keep in mind that the largest gold ETFs are physically backed. Meaning every share is backed with physical gold.
Thanks for going over the bitcoin ETF application info. I like how you included "Why could this time be different" ... Very good post :)