After a slew of disappointments, hope for an exchange traded fund linked to bitcoin remains persistent. A recent solicitation from the Securities and Exchange Commission (SEC) is stoking speculation among crypto market observers that a bitcoin ETF could come to life.
“Just days after Cboe resubmitted its proposal in support of the Van Eck and Solid X Bitcoin exchange-traded fund (ETF), the Securities and Exchange Commission in the United States has urged businesses to offer data and information regarding the common blockchains to ensure that ‘there is no loss in data completeness and accuracy due to the data transformation tools and processes applied,’” reports FXStreet.
Some digital currency market observers have long viewed U.S. approval of a bitcoin ETF as pivotal to increased adoption of the cryptocurrency.
In 2018, bitcoin shed almost 80% of its value. Among the issues plaguing bitcoin; last year were the ongoing unwillingness of U.S. regulators to approve bitcoin-related exchange traded funds as well as data indicating that mainstream acceptance and adoption of the digital currency are declining.
“Provide blockchain data to support the SEC’s efforts to monitor risk, improve compliance, and inform Commission policy with respect to digital assets. The SEC is seeking information for potential sources to support the goal of acquiring data for the most widely used blockchain ledgers, including the universe of available information and transaction details,” according to the SEC solicitation.
To date, U.S. regulators have consistently rejected efforts by ETF issuers to bring bitcoin-related ETFs to market.
Last year, the SEC rejected the applications, preventing the digital currency from gaining more acceptance from investors who are wary of the unregulated exchanges of cryptocurrencies. The SEC’s Division of Trading and Markets rejected applications from investment firms ProShares, Direxion and GraniteShares.
Some crypto market observers view the recent SEC solicitation as a positive step toward getting a bitcoin ETF to come to market.
“Most people are interpreting this step as a significant direction towards the approval of the first Bitcoin ETF in the United States. Bitcoin and the entire market have been in the red for the longest time in history. A correction is required in order to see the market recover after hitting year lows in 2018 as well as 2018. An influx of fresh funds from institutional investors is expected to ignite a reversal in the prices of assets,” reports FXStreet.
For more information on the cryptocurrency market, visit the Bitcoin category.