Bitcoin has been on a slow and steady rise the past couple weeks, and that may continue. Driven mostly by positive news items like Coinbase’s institutional funding, and other countries warming up to the idea of Bitcoin being part of their economy, Bitcoin has added nearly 20% to it’s value int the past 2 weeks. But the biggest boost may be yet to come.
The SEC is currently debating the idea of Bitcoin Exchange-Traded Fund (ETF), as requested by New York-based VanEck and blockchain platform SolidX. The ETF would run through the Chicago Board of Exchange (CBOE). Approval would open the floodgates of institutional and private investments, without the need of the current cumbersome cryptocurrency exchanges.
A previous attempt by the Winklevoss twins for their Gemini exchange was voted down due to the volatility of Bitcoin at that time. But this year has been a sobering and more stable year for the currency, meaning it has a much better chance of passing this time around. And comments submitted to the SEC have been so far mostly (all but 6) positive.
Considering the fact that gold shot up by 300% after it’s ETF approval by Deutsche Bank and the Rothchilds, it’s a near guarantee that BTC surpasses it’s previous $20k price if decided. The decision to approve could come as early as next month.
ICOJournal is quoting an optimistic inside source at the Commodity Futures Trading Commission (CFTC) as “90% certain” the request will pass.
“I would call it 90% at this point. The crypto markets have moderated and regulators have watched the lack of drama surrounding Bitcoin futures across several global exchanges. The price moderation and adoption of a ‘peer product’ is what the conversations have centered around. In January we were justifiably concerned about a bubble and the harm a quickly approved product could attract speculators and create losses that led to significant lawsuits. Now, those factors seem to be mitigated significantly.”
A second source for ICO Journal, a former SEC employee, was just as enthusiastic based on the U.S.’s desires to protect consumers from having to deal with sketchy overseas exchanges and suspicious ICO’s.
“I would expect a positive outcome in September – or if it gets strung out a little further it is simply a few ‘dotted i’s and crossed t’s’ are being finalized on larger regulatory language in the crypto space. To be clear, most of the regulation will be first focused on ICO’s and the issues those pose for retail investors at the moment. US residents are sending money to all sorts of exotic locations to invest in unregulated instruments with absolutely zero recourse for losing every cent they’ve put at risk. ICO regulation will begin to solve those issues and keep client assets ‘onshore’.
This all amounts to very positive news for not just Bitcoin, but most cryptocurrency. Etheruem has been rightfully stealing BTC’s thunder the past couple months. If one has been holding off investing into the cryptocurrency market, this would seem to be a good time to jump back in.