Bitcoin ETFs are likely on the way says CBOE
According to the CBOE president, bitcoin ETFs are likely on the way sometime in early 2018.
ETFs have been filed with the SEC several times now and each time they have either been denied or withdrawn.
However, that was mostly due to the fact that the things they were trying to attach them to, didn't even exist yet.
What I mean by that, is that several of the ETFs were designed to be attached to bitcoin futures/options products, which technically didn't even exist yet.
The SEC's response to these ETF applications was more along the lines of, "come see us again when what you plan on attaching the etf to actually is up and trading."
As opposed to an outright, "no way, no how".
Which, as you might have guessed, is a very different situation entirely.
Only a matter of time?
It is looking like the day where a bitcoin ETF exists is inching ever closer by the day.
With the CBOE and CME both competing to be the first to get bitcoin options/futures products up and trading by the end of this year, ETFs seem like the logical next step.
Especially since it would remove the hurdle that the SEC seemed to be expressing as their reasoning for not approving ETF applications in the first place.
The president of the CBOE, Chris Concannon, thinks either way, ETFs are coming soon.
In an earnings call early Tuesday morning, he had this to say:
“With regulated futures of a certain asset class like a bitcoin, you do have an opportunity to introduce ETFs and over time we do envision ETFs coming to market.”
How much time you might ask?
In an interview later on that day, he further went on to state that that he thinks bitcoin ETFs could be here as soon as the middle of 2018.
Validation by a competitor?
The futures/options bitcoin products are starting to see a lot of competition.
At first some were asking if the CBOE was worried that the CME was trying to do something similar to them in terms of launching a bitcoin futures/options product.
Their response to that was pretty reassuring from a cryptocurrency investor's standpoint.
It read as follows:
“The cryptocurrency space is a space that I think we believe in and certainly our competitor across town believes in as well, I’m just encouraged by that validation.”
The CME is validating the belief held by the CBOE that cryptocurrencies are the next big thing.
What a great way to look at things!
A bitcoin ETF would be the holy grail for bitcoin and cryptocurrencies as it would open them up to a whole host of other investors.
Futures and Options markets are great, game changers in fact, but the ETF would be the absolute cherry on top that takes these things into the stratosphere.
Stay informed my friends.
*Images courtesy of pixabay.com
Follow me: @jrcornel
I am currently going through the process of setting up a self-directed IRA to be able to invest retirement money in cryptocurrencies. It is a HUGE hassle with loads of fees and it's really shown me how hard it is to actually invest in crypto right now.
That's a great thing for people like us who are investing now, because it WILL become easier, and when that happens (very soon it seems) then I suspect that huge amounts of money will start coming in.
That's why I don't believe when people say bitcoin/crypto is in a bubble right now - there's no way it can possibly be a bubble if not that many people are able to even invest in it. Once the flood gates open, then it will end up being a bubble - but it will probably have gone up 10, 20, maybe even 100x by then.
I'm just hoping STEEM stays under $0.90 until my funds clear :-)
Yep, those are my thoughts as well. Nicely said!
I've been waiting for crpto ETFs ever since I first heard of cryptocurrecny - one great thing about it is that you would see large companies buying them up and increasing demand/ value. Big retirement pensions would likely add a small amount as well as hedge fund managers and financial planner looking for new investment ideas for their clients. Once they package them up and start selling them, I think people who would have never gotten involved in crypto would be interested in dipping their toes in to test the waters. Even on a small scale, this could push the demand for crypto well into the stratosphere
Very interesting... this will make bitcoin easy to get through more traditional means and I can see a lot of retirement money getting an allocation too, all of which will increase demand. What about a more general crypto etf? Now that would be interesting...
Yes it would. I would imagine something like that will follow. :)
gotta love those acronyms...ETF, CME, CBOE, SEC
somehow I get the impression that I'm not getting full value from the article because I don't have any idea what those initials mean.
very nice article though. Good formating..pretty pictures...correct spelling..
Haha thank you. Next time I will spell out the acronyms ;)
you're welcome.
It is ridiculous how long it is taking to get a Bitcoin ETF. This has been going on since 2013 at least. It is taking as long as a Bitcoin transaction. :-(
That is funny. But this time is for real! Or so they say. Actually I do think this time is for real. If they get futures/options markets up and running (which they already are), easy to attach ETFs to that.
It will sure be interesting if they get that in place.
A Bitcoin ETF would reduce Bitcoin's function as a currency and make it more like an asset ... high demand would push the price but also the trading volume of actual on-chain transactions because the providers of such trading instruments need to hedge somehow ... thus fees will also rise making it too expensive to use it as a regular currency.
I think it already is much more like an asset as opposed to a currency. It is a currency in the same way gold is... IE it can be used to facilitate trade, but it's not the most efficient and not likely to replace the status quo.
As things go more mainstream it’s only a matter of time. Investing in bitcoin is straightforward (just buy it) but it’s nearly impossible to do so from inside a pension. ISA (uk tax advantaged account) or other equivalents. An ETF would allow that money to flood in! Good times.
It will be nice to have an option to invest traditionally in Bitcoin. In the long term, not sure if this will be good for Bitcoin. When you make something easy people become complacent with their money. The true power of Bitcoin is storing and utilizing your own money.
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STOP"GOOD POST AND IT WILL TAKE, MAKE THE INCREMENT IN PRICE OF BITCOIN".
THANKS FOR SHARING SUCH A GOOD POST.
EVEN ETF WILL BE THE GAME CHANGER.