The hot arising topic in the crypto community now a days is Bitcoin ETF proposal whether to be accepted or rejected again by the US Securities and Exchange Commission ‘SEC’.
There are a numerous rumors in the market considering ETF proposal to be accepted by SEC however the final verdict against its approval is since not confirmed. ETF stands for Exchange traded fund. The proposal for Bitcoin linked ETF was filed by VanEck Corp. and Solid X Partners Inc. to the SEC for the world’s first actual Bitcoin backed exchange. In simple term’s this means to actually hold bitcoins insured against all breakdowns arising from loss or theft of the cryptocurrencies, according to the firms.
Current ETF Highlights
The US Securities and Exchange Commission asked several companies to pull back their dozen applications for cryptocurrency-linked products in January due to the high volatility in the prices of cryptocurrencies seen in year 2017 when Bitcoin reached at price peak levels of around $20,000 USD. The increasing interest of people in virtual currencies in the current time has led SEC to think of a crypto backed ETF again though at present time the crypto market is not performing well. Many cryptocurrencies are down to more than 50% since late 2017 highs. Even Bitcoin has plunged more than 60%. The SEC provided three avenues for people to express their opinion on the Bitcoin ETF filing. The first one was via an online forum on its website. The second one via emails while the third one via traditional mail systems.
They hope to have addressed regulators’ concerns with changes they made in the new, joint request by increasing the share price and basing prices off regulated trading firms, according to SolidX Chief Executive Officer Daniel H. Gallancy.
“Based on various comments, it seems that regulators are concerned right now about having an ETF that is available to retail investors,” Gallancy said in a telephone interview. “We think that will change over time, but right now a good place to start is with a product geared purely toward institutional investors.”
What’s The Situation Now
The previous situation arised when companies filed their proposals back in year 2017, SEC claimed that the market is completely unregulated, and they just couldn’t allow it with a situation like that. For the SEC, the volatility of prices in crypto currencies is the main head reason which has so far led to disapprove a crypto ETF filing. Still, the possibility of SEC actually approving this proposal is not diminished, and doing so might bring the US one step closer to where many other countries stand when it comes to regulating the cryptos in right directions.
But if this proposal of Bitcoin ETF is approved by the SEC, its expected it could add roughly $84 billion to $336 billion Bitcoin market, potentially pushing its price to rise at new heights.