The wait is finally over, SEC approves Bitcoin ETF taking all of us by surprise. A lot of people were making jokes of it yesterday as it was April fools day, little did they know that it is actually happening. Yes, SEC is not only approving one ETF but two. Its been a long time coming, and who would have thought that on the second of April 2019, you would be fooled the second time!
Sorry! I saw this joke yesterday and couldn’t resist. No! Unfortunately Bitcoin ETF has not yet been approved; however, let’s focus on what is true, what progress is there and what impact could the approval of Bitcoin ETFs have on cryptocurrencies.
The Bitwise Proposal
Heres some good news in February the US SEC announced that they would be resuming the review process for Bitcoin ETF applications; so you can be sure that something is happening. They had been looking at the Bitwise proposal that was published on the 15th of February to be precise. And from that day a 45-day countdown was set until the first decision is made by the SEC on whether to extend, approve or reject the application; and yesterday was the 45th day, and well you know the story, another extension.
The second Bitcoin ETF
Nevertheless, as of August 2018 has been up for review. This was published on the 31st of January as the resubmitted VanEck-SolidX application was under review. Even the digital asset strategy director of VanEck has expressed how he strongly believes that if SEC approves Bitcoin ETF, it will greatly benefit the public. Furthermore, he goes on to say how the ETF that VanEck offers is a physical Bitcoin ETF. Therefore this is a differentiating factor from the ones that have been previously disapproved. The claims are that this physical ETF is completely insured.
Let’s look at some of the importance of a Bitcoin ETF being approved.
When and if the SEC approves Bitcoin ETFs it could result in some massive price gains for digital currencies. There have even been predictions that if one of these Bitcoin ETFs is approved the value of Bitcoin may go up to as much as $35 000; and increase the overall digital currency worth.
Less risk if SEC approves Bitcoin ETFs
There is a lot of risks that come with owning digital currency and if SEC approves Bitcoin ETF allowing investors to purchase Bitcoin via retirement accounts and brokerages; this risks may be significantly reduced. Furthermore, you could earn Bitcoin by simply purchasing shares if SEC approves ETFs, taking away the long process that exists now with all the unnecessary risk. Why transferring your funds from one place to another.
The aspect of legitimacy
Most cryptocurrency fanatics are concerned mostly about cryptocurrency prices, and I wonder if it should be so. However, others look at the bigger picture, the legitimacy of cryptocurrency. Bitcoin ETFs have been disapproved a lot in the past with one of the reasons given that; the Bitcoin markets are not regulated making them vulnerable. This resulted in a massive Bitcoin price decline. If the SEC approves Bitcoin ETFs, it could be a significant indication of digital currency legitimacy.
The increase in Adoption
If the SEC approves Bitcoin ETFs; any individual that owns a retirement account or has an investment account with a brokerage can buy cryptocurrency. It may be quite a tedious process for some people to follow the whole process of buying bitcoin and then transferring it to a wallet. Therefore, the SEC will increase the use of bitcoin use by allowing people to purchase it through these accounts.
It may seem like it’s never going to happen, but I strongly believe that it will. The progress is slow. However, the impact of approving even one ETF is too significant to ignore. As things are developing in the cryptocurrency scene, the SEC will have no choice but to give in. stay tuned for more updates.