The long wait for a bitcoin ETF could be nearing its end. Recent news reports, citing unidentified sources in some regulatory agencies, suggest a bitcoin ETF could arrive before the end of 2018.
In June, ETF sponsors VanEck and SolidX, a fintech company engaged in the bitcoin ecosystem, revealed plans for the VanEck SolidX Bitcoin Trust ETF (XBTC). That fund is targeted at institutional investors as it would debut with a share price of $200,000. That product would track an index linked to a group of bitcoin trading desks, possibly allaying some of the SEC’s prior concerns about funds linked to physical bitcoin.
To date, the Securities and Exchange Commission (SEC) has not approved any of the various filings for bitcoin ETFs. A source at the Commodities Futures Trading Commission (CFTC) told ICO Journal that there is a 90% chance that a bitcoin ETF is approved this year.
“I would call it 90% at this point. The crypto markets have moderated and regulators have watched the lack of drama surrounding Bitcoin futures across several global exchanges. The price moderation and adoption of a ‘peer product’ is what the conversations have centered around. In January we were justifiably concerned about a bubble and the harm a quickly approved product could attract speculators and create losses that led to significant lawsuits. Now, those factors seem to be mitigated significantly,” the source told ICO Journal.
Bitcoin ETF Ideas Patiently Waiting
Earlier this month, the SEC approved plans for public comments on bitcoin ETFs, which could pave the way for the funds to finally come to life. However, some market observers believe that if the SEC does not approve bitcoin ETFs in the coming months, the effort could be pushed off until 2019 and beyond.
Related: Bitcoin Market Cap Could Triple, Says VanEck Analyst
Broadly speaking, market observers expect a bitcoin ETF to be immediately successful with crypto market participants forecasting a potentially significant price surge for bitcoin if such a fund is approved. Bitcoin, the largest digital currency by market capitalization, recently regained some momentum on news that the SEC opened a public comment period on CBOE’s efforts to launch a bitcoin fund on its exchange.
“I would expect a positive outcome in September – or if it gets strung out a little further it is simply a few ‘dotted i’s and crossed t’s’ are being finalized on larger regulatory language in the crypto space. To be clear, most of the regulation will be first focused on ICO’s and the issues those pose for retail investors at the moment. US residents are sending money to all sorts of exotic locations to invest in unregulated instruments with absolutely zero recourse for losing every cent they’ve put at risk. ICO regulation will begin to solve those issues and keep client assets ‘onshore,’” a source at the SEC told ICO Journal.
For more information on the cryptocurrency market, visit our Bitcoin category.