With all the excitement around Cboe’s re-submitted proposal to launch a Bitcoin ETF, investors and crypto enthusiasts alike wait eagerly for SEC approval – will 2019 be the year?
Back at It – Who Will Launch the First U.S. Bitcoin Exchange Traded Fund?
Last Thursday, Cboe resubmitted its joint proposal with VanEck/ SolidX for Bitcoin ETF for SEC Approval. What does this mean? Basically, if it were to be approved by the SEC, it will allow the Cboe BZX Exchange to list shares of a Bitcoin ETF trust. This would greatly affect the crypto market as a whole by creating the opportunity for more market liquidity via opening the doors to investor money. We should know by Fall whether or not the SEC approves or rejects the approval, as they usually take about 240 days to make the decision.
Will We Have a Bitcoin ETF in 2019? Probably Not. Here’s Why:
If the SEC waits until the last minute, but approves Cboe’s proposal, only 2 months would remain in year 2019 to open the ETF up to the market. In order for all this to happen in 2019, Cboe would have to be ready and willing to execute the initiation of the ETF immediately. Two additional factors are at play:
- Unregulated Exchange Issues: The CFTC is still looking into price manipulation in the cryptocurrency markets. There have been a number of unregulated Exchanges who have been found to have been involved in “faking” trading volumes of certain cryptos. Of course, this is still being broadly investigated.
- Van Eck Wants to Work Through the Weeds, Not Jump Over Them: Due to the Government shutdown, Cboe’s proposal was temporarily withdrawn due to the unlikelihood of it being passed during this time. Van Eck explained that they had been engaged in discussions with the SEC about bitcoin related issues, custody, market manipulation, etc. He explained that it is important to re-engage in these, rather than attempting to just push the ETF through without working through these issues.There are several additional efforts to offer ETF investments in both CBOE and CME, including one proposed by the Winklevoss twins.
It May Not Be 2019, but Bitcoin ETF is Still in Future Forecast
Although 2019 may not be THE year for the first U.S. Bitcoin ETF launch, we’re still on our way. There are several additional efforts to offer ETF investments in both CBOE and CME, including one proposed by the Winklevoss twins.
We will definitely see bitcoin ETF’s in the future. The main question is whether or not the crypto market has matured enough to be ready for it, as SEC concerns may still prevail.