US Security Exchange has not approved any Bitcoin-related ETF so far. The bitcoin community has been waiting for two years for the BTC ETF, but they have only been met with disappointment by SEC. SEC has repeatedly cited market manipulation reasons for delaying and not approving ETFs. Even in this month, the SEC has postponed three BTC-ETFs.
As much as the bitcoin community is excited about ETF approval, it is important to understand what potential changes it could bring to the investment market. ETF is a fund that holds ownership of any underlying asset. ETFs are traded like common stocks on regulated exchanges. Several reports have suggested that if BTC-ETF is approved, it could change the whole market dramatically.
ETFs are insured and collateralized in nature, so it would help bring a sense of security among investors as they won’t have to worry about losing their private keys or getting hacked.
Director at VanEck, Gabor Gurbacs believes that BTC ETF can also change the crypto investment market for good. He believes once ETFs are approved, it can help bring high liquidity, transparent holdings, transparent prices in the bitcoin market. He also mentioned that it would also help in protecting investors as all the funds are backed by the actual amount of asset, and it would also help the government to tax investors with all required documents.
+ Daily proof of reserves (NAV)
+ Transparent holdings
+ Transparent prices
+ High liquidity
+ Proper tax documents
+ Investor protections#Bitcoin & #crypto need transparent, liquid and regulated ETFs. Investors deserve fair & orderly markets & better protections. pic.twitter.com/N3F07xdcw7
— Gabor Gurbacs (@gaborgurbacs) May 2, 2019
As of now, SEC has not approved any BTC ETF due to the market’s vulnerability to manipulation. SEC reserved its decision to list VanEck’s BTC ETF to 18th October. The crypto community is eagerly waiting for SEC’s approval as this decision holds a lot of promise for the future of the crypto community’s market.