The first proposal for Bitcoin ETF was made by brothers Winklevoss in 2013. Since then many crypto companies prepared their official proposal for Bitcoin ETF. But even after nine years we still don’t have any SEC approval of Bitcoin ETF. So the main question remains: When is Bitcoin ETF coming to market?
Cointelegraph created a great video about Wall Street’s path to crypto and we highly suggest to watch the full 13 minutes documentary about Bitcoin ETF.
Wall Street’s path to Bitcoin ETF
Highlights from the video about Bitcoin ETF
If Wall Street’s investors see the opportunity to make money, they will look for the way to participate in those markets. That’s what’s happening now in crypto space.
You can see the real interest of institutional investors. This is an asset class that allows the institutional investors to diversify their portfolio, said Hester Pierce, an SEC commissioner.
Bitcoin ETF brings Bitcoin from a grey area (e.g. bitcoin exchanges) to regulated area.
Large institutions can’t buy BTC the same way as retail investors do. They need a regulatory approved mechanism. That’s why they are pushing Bitcoin ETF.
Institutional investors may invest between 0,3 – 0,7 % of their portfolio to Bitcoin ETF. Certainly less than 1%.
SEC needs to see enough liquidity to give approval. They need to see a fluid market without price manipulation. SEC have to be able to trace every bitcoin trade. So apparently that is not what we see in today’s bitcoin market, is it?
As you watch the video, all the interviewed persons (Richard Keary — ETF Consultant and founder of Global ETF Advisors LLC, Gabor Gurbacs — Digital Asset Strategist/Director at VanEck, David Yermack — Professor and Chair of the Finance Department at NYU Stern School of Business, Hester Peirce — SEC Commissioner) agreed that approving Bitcoin ETF is just a question of time. It is a question when not if.
