In this post, I will be analyzing different aspects as well as effects of Bitcoin ETF. I am seeing that most of the crypto influencers saying that bitcoin will be 10x because of bitcoin ETF. Recently the news broke out that CBOE group has filed a request in SEC for approval of Bitcoin ETF. In the previous year, they are the ones who launched bitcoin futures which played a huge role in bitcoin success. So let’s start analyzing each and every aspect of this news.
As this post will going to be long so please read the full post thoroughly before passing any hate comments. This article is not meant for the promotional purpose it is for educational purpose. We are not financial advisors and we will not responsible for any losses or profits it is all yours. Once again this is for educational purpose.
Before going into deep lets first talk about bitcoin haters. Many people criticize bitcoin because of price fluctuation and say that it is not backed by any assets. All I want to say that bitcoin and crypto is just tip of the iceberg, the main thing is blockchain so please do research on blockchain then criticize it. I have seen many people criticizing bitcoin without knowing the blockchain technology. In my words, bitcoin is backed by a beautiful technology knows as blockchain. They say that the real worth of btc is zero then I can also say that the worth of gold is zero. Now I know you will be laughing at the previous statement but the point is “people rate of acceptability” decides the worth of anything. If people believe in a particular thing it’s price eventually will go up according to the demand and supply.
Now let’s move on to our main topic that is bitcoin ETF.
Bitcoin ETF news is in trend right now and everybody wants to know about it. Many crypto experts e.g. Bitmex CEO is saying if bitcoin ETF is approved then btc can reach up to 50k USD this year. I know many of you are thinking that it is a joke but when last year CBOE group introduced bitcoin futures btc went from 3000 USD to 19000 USD in a very short span of time.
Before going to the reasons which make bitcoin ETF possible let’s talk what does it really mean. As you know that in the world of trading stocks NYSE and NASDAQ are the biggest players and if our Bitcoin will able to list there then what will be the price, just think about it. Now you will be thinking that it is not possible, well I will give you the reasons in the next paragraph. ETF(exchange-traded funds) is the fastest growing investment product and used by millions of investors. The market for ETF is trillions of dollars and increasing so our bitcoin will get exposed to these funds. Bitcoin ETF will play a major role in bringing trillions of dollars in our crypto market. Our crypto market needs these kinds of privilege to grow and mature rapidly.
With this traders can easily buy and sell bitcoin directly from their trading or brokerage account. This will bring an unprecedented bullish run in the crypto market. Millions of large fund managers will get exposed to bitcoin. I know this makes you a bit excited but to make it possible there are several problems as well. Let’s discuss it.
Reasons for Bitcoin ETF will be approved
On last year July, the news came that CBOE group is launching bitcoin futures which made bitcoin price bullish. This year July the news came that CBOE group has filed an application for approval of Bitcoin ETF in US securities exchange commision. Now the main question is “will it get approval”. Well if you don’t know CBOE group is a very big well known reputed firm in trading business in the US. They are very good at getting approval from the SEC. They do proper research and preparations before jumping into any other field. CBOE credibility is very good at these things if see their previous records and milestones.
Many firms are trying since 2014 for this approval but they can’t make it due to some reasons. So if these reasons get solved the chances are likely to increase. But now CBOE group has come into the game so chances are even more as I said earlier.
SEC concerns and why SEC rejecting bitcoin ETF till now
There are only two main concerns or reasons by SEC for bitcoin ETF.
1- Lack of global regulatory rules for crypto as well as crypto exchanges.
2- Safety concerns or lack of insurance for crypto investors. They have concerns over hacking and if private keys are lost.
Now I will tell you that most of the biggest exchanges are in Japan and South Korea and now in both countries, they have been regulated so the 1 st reason is solved most likely. Also for the 2nd concern, CBOE group has clearly said in their filer that they will take the full responsibility for the funds of their investors. So both main concerns are likely solved and a very much reputed group has filed the application so chances are that they will get approval because this is what SEC is looking for and they will be the first ones who will launch bitcoin ETF.
You can see a video on bitcoin ETF topic here to understand it more deeply.
This announcement will be the biggest announcement in the history of cryptocurrency. This decision is very much necessary for our crypto market to boom again at an unprecedented rate. In the previous year people ignored the bitcoin futures announcement and regret afterwards now this is the chance again we are getting to grab. So don’t sell your bitcoin and if someone wants to buy bitcoin buy it, this is the right time but make sure don’t buy out of your limits buy only which will not affect you much.
Fingers crossed, let’s hope for the best. Please do take a minute to share it with your friends and relatives if you like it. If you want to ask any query just write down in the comments section below.