The launch of Bitcoin ETF’s could drive Bitcoin (BTC) price higher. Although the SEC has previously denied permitting Bitcoin ETF trading, two asset management firms have collectively submitted a new application to introduce regulated Bitcoin ETF’s (Exchange-Traded Funds).
SolidX Management LLC and New York-based asset manager Van Eck Associates Corp said their new product would cover all the concerns that the SEC has highlighted in their previous denial.
“I believe that Bitcoin has emerged as a legitimate investment option, as a type of ‘digital gold’ that may make sense for investors’ portfolios,” Jan van Eck, the chief executive officer of VanEck, said in a statement.
Source Image: coinmarketcap.com
Bitcoin ETF’s: A New Filing Addressed SEC Concerns
The main targeted investors for this ETF are institutional investors rather than retail traders. This is due to the SEC’s warning that cryptocurrencies carry a higher risk for retail investors.
The high price tag of $200,000 per share is an indication that institutional investors are taking interest in regulated Bitcoin ETF’s. SEC had also raised concerns about a lack of transparency on online platforms, which they believe are much easier to manipulate. The firms are now planning to introduce a trading desk for price data instead of doing all the business through online platforms.
What Would be the Impact of Bitcoin ETF’s on Crypto Markets?
Source Image: twitter.com
Bitcoin market pundits, on the other hand, believe Bitcoin ETF’s could attract a huge amount of investments in cryptocurrency markets. Bitcoin price and the rest of cryptocurrency market rose slightly higher amid renewed prospects for the launch of regulated Bitcoin ETF’s.
>>Cardano [ADA] Brand Refresh – Cardano Roadmap Gets Overhaul
The cryptocurrency markets, on the other hand, have been desperately waiting for fundamental support or investments from Wall Street investors to create a new bull-run. Though it’s too early to say whether SEC will accept the request, traders believe ETF’s launch could create a huge rally in Bitcoin price in the coming days.
Featured Image: Depositphotos/© Vadymvdrobot
