An ETF for Bitcoin Is Unlikely This Year According to Brian Kelly
ETF is Unlikely: Demand is growing for the establishment of a crypto ETF or exchange-traded fund. Just yesterday major exchange Bitwise joined the fight and filed a proposal to the SEC for an ETF.
But despite the desire for an ETF, Brian Kelly – CEO of BKCM; an independent investment firm specializing in cryptocurrency and blockchain-focused investment opportunities has expressed his opinion that it might not be possible in 2018.
Kelly has suggested that the establishment of the first Bitcoin ETF will be tough to get approved by the U.S. Securities and Exchange Commission (SEC) in the current year.
In an interview with CNBC, the economics expert stated:
“I also hope there is an ETF. But I think the chances of a bitcoin ETF in 2018 are relatively low. There is still quite a few things. That doesn’t stop speculation on that. That’s one reason why we’ve seen this bottoming process here from $5,800 to $8,500.”
And his opinion is mirrored elsewhere too, as Bob Pisani, a CNBC business expert, also suggested that the higher authorities of SEC are unwilling to pass a proposal for a Bitcoin ETF any time soon. He hinted that the authorities are taking a “go slow” approach towards the establishment of a bitcoin ETF.
ETF is Unlikely – Why Are the SEC Moving Slowly?
The SEC’s reasoning is that the coin still has many unresolved concerns that affect an ETF being established. The body needs more time to asses these concerns which, more specifically, surround security and transparency.
It announced that it would “designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change.”
And further comments from the SEC regarding this decision have been postponed until September 21.
Demand is there for an ETF as it would create massive growth in the crypto-space; investors around the globe would be encouraged to invest into crypto as security and stability in the market would be far more reliable. A surge of investment would result in a sudden surge in the value of Bitcoin and other cryptocurrencies and eventually could make the cryptocurrency market a major contributing factor in the global economy.
Already, mere speculation regarding ETF’s has caused effects on Bitcoin Price, imagine what might happen if it gets approved.
After ten months of stagnancy, the newly re-opened Japenese cryptocurrency exchange Coincheck has resumed its NEM (XEM) trading. According to a South Korean news source FNNews, Coincheck has restricted its platform by external ‘security experts.’
Zachary Coburn, the founder of EtherDelta, has just been charged by the US Securities and Exchange Commission (SEC) with operating an unregistered securities exchange. The SEC released the news via a press release yesterday.