Could ETF's Save Bitcoin?

in #bitcoin6 years ago

It doesn't take a degree in finance to see that cryptocurrencies across the board in 2018 have been stuck in a cold, dark place when it comes to price. After experiencing the highest of highs, Bitcoin and by proxy every other top ten coin has seen its value considerably dropped (in many cases more than halved).

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image from pixabay

If you're not familiar with the term, ETF stands for exchange-traded funds. It's an investment fund that can be bought and sold on a securities exchange market.

In a recent CNBC appearance, CEO and co-founder of BitMex cryptocurrency exchange Artur Hayes said he believes Bitcoin could rise as high as $50,000 by the end of 2018.

In a rather optimistic look at the value of Bitcoin he said:

We're one positive regulatory decision away, maybe an ETF approved by the SEC, to climbing through $20,000 and even to $50,000 by the end of the year.

It's really hard to read the market, and even harder to determine if a Bitcoin ETF would indeed cause the price to rise. Interest in cryptocurrency has been falling across the board since dropping from meteoric highs of 2017.

We have yet to see a bitcoin ETF approved by the SEC just yet, and understandably the SEC is taking a very hardline approach with very high standards for ETF approvals. In January 2018, the SEC asked a few companies that had submitted applications for a Bitcoin ETF to withdraw due to numerous concerns.

However, another ETF proposal has appeared and is confident they've met the SEC's high standards and addressed all concerns. VanEck Associates and cryptocurrency start-up SolidX Partners have teamed up to attempt to bring a Bitcoin ETF to market, filing a request with the SEC in early June. It's worth noting this is VanEck's third attempt after a similar application in January 2018 and one in September 2017. SolidX similarly also failed with an application in March 2017.

If successful, each share of the VanEck SolidX Bitcoin Trust is going to cost a whopping $200,000 USD. This is definitely not a fund aimed at amateur bedroom investors, it's a fund targeted at investment professionals and institutions.

If successful and that is a massive if, then this could finally see the long-awaited and promised flow of institutional money that speculators have been promising will come since mid-2017. Who knows if the value would ever reach $50,000, but one thing is for sure if a Bitcoin ETF is approved it'll cause the price to rise and by proxy, other coins in the top ten.

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ETF's are great. Much easier to sell and buy then for example mutual funds. I think these are great for the cryptomarket when they start to invest

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