Bitcoin ETFs Launch
3 min read

Bitcoin ETFs: The Next Traditional Bitcoin-Based Investment?

By Editorial Team

Bitcoin ETFs … what’s the deal?

The cryptocurrency ecosystem has been absolutely abuzz with chatter over Bitcoin futures, as powerhouse market leaders like Nasdaq and the Chicago Mercantile Exchange launch these unprecedented speculative assets.

ETFs

The institutions are coming to crypto – Image via CNN

One thing lost in all the present excitement? The status of currently pending Bitcoin ETFs, or “exchange traded funds.” These ETFs could be the next Bitcoin-based financial instrument to send institutional investors into a frenzy.

And while there have been multiple applications for these ETFs in recent months, none have materialized … yet.

Let’s give you a quick update on the status of these funds.

First off, what are ETFs

You’ve just barely started to wrap your head around what futures are. So how about exchange traded funds?

Per Investopedia, an ETF is a “marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund.” Accordingly, a Bitcoin ETF would track BTC as a commodity similar to gold or oil. This fund could be held or traded like a regular stock holding.

To this end, these funds could help further legitimize Bitcoin toward being a mainstream, mature asset.

ETF applications declined earlier in the year

It’s been a string of set backs in recent weeks for Bitcoin ETFs.

Back in October, two firms who had applied to launch these kinds of funds — Intercontinental Exchange and Van Eck Associates — withdrew their ETF applications after the United States’ Securities and Exchange Commission (SEC) determined these funds shouldn’t go live until after Bitcoin futures officially materialized.

Consequently, other applications, like two from Proshares Capital Management and the Winklevoss’ twins ETF COIN, still haven’t been approved by the Commission yet either.

But more applications keep coming

It’s clear, then, that the SEC is taking a wait-and-see approach. But they presumably won’t have to wait much longer since once of their main original concerns was that ETFs shouldn’t be launched until after Bitcoin futures have.

The situation is clearly shifting, of course, because the CBOE Group just launched the first Bitcoin futures only days ago now. To that end, CBOE President Chris Concannon remarked during a recent conference call that the next step is clear:

“With regulated futures of a certain asset class like a bitcoin, you do have an opportunity to introduce ETFs and over time we do envision ETFs coming to market.”

The SEC now has something to go off of with the CBOE’s Bitcoin futures, and with Nasdaq and CME Group doing the same over the coming days, the Commission will undoubtedly render some kind of official guidelines.

There’s no reason to think the agency is permanently against the idea of Bitcoin ETFs. They’re just wanting the market situation to develop further, which it’s absolutely doing right now.

That means we could be seeing such ETFs sooner rather than later now. So as ETF applications pile up on the SEC’s desks, it wouldn’t be unreasonable to project these funds hitting marketplaces at some point throughout 2018.

In the very least, the SEC seems open-minded about the entire cryptocurrency ecosystem. Chances seem strong that exchange-traded funds are all but imminent.

Featured Image via Fotolia

Editors at large. Posting the latest news, reviews and analysis to hit the blockchain.
View all posts by Editorial Team -> Best Crypto Deals ->

Latest Posts

Huobi Global Review
Huobi Global Review 2022: Good Exchange with DEEP Liquidity
Huobi Global Review

Huobi Global Review 2022: Good Exchange with DEEP Liquidity

June 29, 2022 37 min read
FTX vs FTX US Review
FTX vs FTX US: Which one is BEST for You?
FTX vs FTX US Review

FTX vs FTX US: Which one is BEST for You?

June 27, 2022 14 min read
Bancor Review
Bancor Review: Impermanent Loss Protector?
Bancor Review

Bancor Review: Impermanent Loss Protector?

June 22, 2022 15 min read
Bridge Mutual Review
Bridge Mutual: Insurance for your Crypto
Bridge Mutual Review

Bridge Mutual: Insurance for your Crypto

June 22nd, 2022 22 min read
Serum Review
Serum Review: Solana’s One-Stop DeFi Toolbelt
Serum Review

Serum Review: Solana’s One-Stop DeFi Toolbelt

June 16, 2022 17 min read
Raydium Review: Solana’s DeFi Liquidity Mammoth

Raydium Review: Solana’s DeFi Liquidity Mammoth

June 11, 2022 17 min read
crypto com
Crypto.com Exchange Review 2022: A World-Class Crypto Exchange
crypto com

Crypto.com Exchange Review 2022: A World-Class Crypto Exchange

June 14th, 2022 30 min read

Related Posts

Huobi Global Review
Huobi Global Review 2022: Good Exchange with DEEP Liquidity
Huobi Global Review

Huobi Global Review 2022: Good Exchange with DEEP Liquidity

June 29, 2022 37 min read
FTX vs FTX US Review
FTX vs FTX US: Which one is BEST for You?
FTX vs FTX US Review

FTX vs FTX US: Which one is BEST for You?

June 27, 2022 14 min read
Bancor Review
Bancor Review: Impermanent Loss Protector?
Bancor Review

Bancor Review: Impermanent Loss Protector?

June 22, 2022 15 min read
Bridge Mutual Review
Bridge Mutual: Insurance for your Crypto
Bridge Mutual Review

Bridge Mutual: Insurance for your Crypto

June 22nd, 2022 22 min read
Serum Review
Serum Review: Solana’s One-Stop DeFi Toolbelt
Serum Review

Serum Review: Solana’s One-Stop DeFi Toolbelt

June 16, 2022 17 min read
Raydium Review: Solana’s DeFi Liquidity Mammoth

Raydium Review: Solana’s DeFi Liquidity Mammoth

June 11, 2022 17 min read
Top Desktop Crypto Wallets
The 8 Best Desktop Wallets in 2022
Top Desktop Crypto Wallets

The 8 Best Desktop Wallets in 2022

May 30, 2022 16 min read