Bitcoin ETF’s | The Potential Launch Could Create a BTC Rally

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.

Bitcoin ETF's

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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?

Bitcoin ETF's

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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.

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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

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