When US Bitcoin ETF?
As Bitcoin continues its meteoric rise, notwithstanding today’s correction, many wonder when a US Bitcoin ETF will be approved.
There is increasing pressure on the Securities and Exchange Commission (SEC) to do something after neighbours Canada launched not only three Bitcoin exchange traded funds, but has now also approved 3 Ethereum ETFs.
There’s no doubt the US is lagging it’s neighbour, but with several ETP products in Europe, the US could fall further behind European markets with Bitcoin traded products.
Will We See One This Year?
With former chairman Jay Clayton stood down from his position, and blockchain MIT professor Gary Gensler set to take over the running of the SEC, surely the US will approve one or more Bitcoin ETFs this year.
MicroStrategy CEO Michael Saylor believes we will see a Bitcoin exchange traded fund by the end of the year. Speaking on BTC Sessions last night Saylor was asked what he thought about Bitcoin’s price and volatility.
The MicroStrategy CEO couldn’t offer his price predictions for legal reasons, but said, ‘I think we will certainly have ETFs on the market, and that’ll be a big thing. And I think we’re going to see all the major banks offer Bitcoin as a fund.’
SEC Looking At 8 US Bitcoin ETF Proposals
Right now there are eight US Bitcoin ETF proposals with the SEC, with applications from Fidelity, VanEck, Skybridge Capital, Galaxy Digital and Grayscale Investments who are looking to convert GBTC into an exchange traded fund.
If Grayscale is awarded the right to launch an ETF, it would be converting its $35.5 billion GBTC, which is also traded out of Canada.
And with the success but limitations of the Grayscale Trust, surely the SEC is running out of excuses for a US Bitcoin ETF?
Nic Carter believes with so many proposals in the mix the SEC might feel pressured into saying yes, especially with the limitations of the Grayscale Bitcoin Trust.
‘There’s a huge amount of pressure on the SEC to do something,’ claims Carter. ‘The trust has way outgrown its structure and the lack of an arbitrage mechanism is causing a fair amount of harm to holders.’
Analyst James Seyffart said he doubts the SEC would deny VanEck again. ‘[The SEC] would have to either approve or deny both Wisdom Tree and Van Eck in 2021,’ claims Seyffart. ‘Personally, I just can’t see the SEC denying both unless something changes.’
A US Bitcoin ETF Will Introduce a Torrent of Money
A Bitcoin ETF has been a hot topic for many in the space since 2017. And while the Bitcoin market back then was probably not mature enough, it’s completely different now.
We have 3 Bitcoin ETFs in Canada; we have insatiable institutional demand for Bitcoin, who are making Bitcoin a part of their balance sheets; and we have an SEC chairman that knows and understands the merits of Bitcoin.
A US Bitcoin ETF will be awarded, and likely more than one, this year. Once we have one, or two, or more, they will introduce a torrent of money into the Bitcoin market from corners of the market that could never buy Bitcoin before.
