Bitcoin ETF or the Bitcoin Exchange Traded Fund came very close to the approval of United States Securities and Exchange Commission! However, this can be possible only when there is better ‘market surveillance as well as custody for the Cryptocurrency’ and for this to happen it might take some more time.
Well, it comes to a little surprise after Chairman of U. S. SEC, Jay Clayton announced about giving a nod to Bitcoin ETF (exchange traded fund). Till date SEC has denied access to numerous ETF applications, because the committee understands that they are still not up to date when it comes to ‘investor protection’.
First Bitcoin Exchange Traded Fund
If everything falls in place then Bitcoin Exchange Traded Fund is going to be first of its kind in this league! It was at the Consensus Invest Conference in Manhattan that Jay Clayton specifically announced about its plan to release first Bitcoin ETF however, this can be done only after careful consideration of how things work out post complete quality check.
‘Manipulation’ is one of the major concerns that Clayton stressed on and he said that most of the Cryptocurrency exchanges are not equipped with similar monitoring tools which usually is there with stock exchanges. This would further lead to not getting to know exact price of Bitcoin, it may also harm interests of the investors.
On the other hand, if we take a note of exchange traded funds then they end up keeping a track of index or a group of assets. Earlier as well, SEC did not approve Exchange Traded Funds brought up by Winklevoss Brothers. Reasons behind this was a simple fact that there were many risks involved overall and US SEC could not take up such ETFs to a larger interface.
Custody or Storage Matters in case of ETF
Of course, storage or the custody is another of the major concerns that we are facing nowadays and hence even U. S. Securities and Exchange Commission Chairman, Jay Clayton mentioned this about safe storage of assets.
When we look at the price of Bitcoin, then we know that its price is already not stable therefore, this stands to be one of the hurdles that has to be addressed at the earliest before taking things to the next level.
Out there, a number of ‘custody solutions’ related to cryptocurrencies are there or are in the pipeline. It is now to see how these set of solutions come forth to assist Cryptocurrency custody apart from handling trade execution for ‘institutional investors’. To ensure that end results are perfect, Clayton went on to add that a lot more improvement in custody solutions shall be helpful!
Would US SEC decision affect Bitcoin Pricing?
This is one of the major questions arising in crypto discussions. As most of us are aware of how volatile Bitcoin has turned itself in to. However, experts would not be able to say currently as to what would this decision of SEC bring in for Bitcoins!