Although more businesses are accepting bitcoin, the currency’s reputation for volatility could hinder broader acceptance. Additionally, some experts have argued bitcoin has no correlation to major currencies such as the U.S. dollar, therefore rendering it ineffective as a hedging tool.
Greebel said “the ETF should help the development of a large, institutional exchange for bitcoin to complement the offerings that currently exist from retail-focused platforms,” according to the Journal. He did tell the Journal when the ETF could be approved or debut for public consumption.
Bitcoin and the ETF concept got something of a lift in November when representatives from the Department of Justice and Securities and Exchange Commission told the U.S. Senate Committee on Homeland Security that the currency is indeed a legitimate financial tool. [Bitcoin Moves to Legitimacy; ETF to Follow]
ETF Trends editorial team contributed to this post.