Although Bitcoin’s prices continue on a downward trend, many institutional investors are still waiting for what could be the holy grail: a Bitcoin exchange-traded fund. Experts say, however, that Bitcoin ETFs are getting nearer- You’ll just have to break out your binoculars to see.
The United States Securities and Exchange Commission continues on a snail’s pace in regards to a Bitcoin or other cryptocurrency ETF. John Hyland of Bitwise Asset Management, however, believes we’ll be seeing an ETF, long considered a major market catalyst “sooner rather than later.”
In an interview with ETF.com about the odds of seeing a Bitcoin ETF in the near future, Hyland had this to say:
“I think we get them sooner rather than later. But I also think that if we don’t see any action by the SEC in the next two months, we’ll jump to 2019 and beyond. I don’t see the SEC going from red light to green light anytime near the midterm election. It’ll make them gun-shy.
I handicap the odds of a U.S. ETP in crypto as follows: 20% chance in 2018; 60% chance in 2019; and a 20% chance beyond 2019.”
While waiting another year may look like an unattractive prospect to investors champing at the bit to see Bitcoin go rocketing upward, but institutional investors are rather unlikely to dive into the cryptocurrency market, not without proper regulatory measures in place.
That being said, it’s a fair bet that once the very first Bitcoin ETF does get approved, it will be like a dam breaking for other cryptocurrencies. Hyland explains that:
“…from the regulatory standpoint, if you’ve accepted the argument that a futures-based bitcoin product can be declared effective, on what grounds do you then turn around and deny the next three or four issuers?
Everybody who has the same outline of a product is going to probably be declared effective in roughly the same small time frame.”
Once this happens, you can expect Bitcoin’s direction finally change.