Of the Exchange-traded fund (ETF) on Bitcoin , that is passive mutual funds with low commissions that replicate the performance of the underlying cryptocurrency, ensuring ease of use, transparency in risk-return profile and flexibility in investment strategies. This, in a nutshell, is the gift that crypto-investors – and especially those seasoned traders who are not familiar with exchanges – have been asking for some time from Sec , the federal authority responsible for supervising the US stock exchange. But where are we? Here is a reconnaissance.
Bitcoin, when will the first ETFs arrive?
Last June 17 was a day marked in red in the crypto-amateurs’ calendar, as the SEC had to rule on the proposal of Invesco – US investment management company – to launch two Bitcoin ETFs , The Invesco Galaxy Crypto Economy and The Invesco Galaxy Blockchain Economy. Only, needless to say, it was yet another hole in the water.
Yes, because the Commission has decided to postpone for the second time – it had already happened last March 15 – the decision on Invesco’s ETFs, and the queue is getting longer. On the table of the SEC there are in fact eight requests (pending) from as many broadcasters who would like to launch their replicants, including the ETF of WisdomTree which would trace the listing of Ethereum .
The Sec, in short, is melina. The headlights of the authority are in fact always focused on the potential manipulation of market prices of crypto-assets. And the same Gary Gensler , at the helm of the Commission since last April, has never hidden his orientation towards Bitcoin & Co., repeatedly raising the need to implement new regulations to protect the investors.
What prospects, then? According to analysts, also given the prudence with which the Sec moves on the cryptocurrency minefield, it remains highly unlikely that crypto-ETFs will obtain clearance by the end of 2021 . “ The market has grown, but it still lacks some basic standards that have on the stock markets ,” Gensler’s line.
The potential effects of a Bitcoin ETF
In any case, also given the growing demand for financial products on Bitcoin and other cryptocurrencies, it is likely that this interlocutory phase will be followed – sooner or later – by the approval of the ETFs by the Sec. that point, the effects on crypto-assets ?
Liquid products such as replicants would inevitably bring swarms of investors closer to digital currencies, resulting in accelerated prices , and would also ensure a higher standard of security by moving in a regulated space . At the same time, however, the known unknowns relating to the speculative drift of the assets would not be completely resolved. But this, after all, is another story.