Complete insights concerning Bitcoin ETFs.

Various cryptocurrency advancements

Advancements in the cryptocurrency domain have alternatively spurred lots of other financial domains as well, due to the precise reason that the market is in its developmental stages. The cryptocurrency world has been continuously expanding since 2009, with thousands of cryptocurrencies and a variety of subdomains. All such activities of advancements directly contribute to the development of cryptocurrencies and help the market in attaining maturity. Security is the utmost priority for the cryptocurrencies, as they are more vulnerable to attacks due to their online nature, and constant improvements to secure the Bitcoin funds in alternate ways have been tried out.

Bitcoin ETFs would be a great venture

Bitcoin ETFs is one such initiative that has continuously been the center of discussion for various cryptocurrency blogs and discussion forums. Bitcoin ETFs are nothing but a type of Exchange Traded Funds which acts as a security for its underlying asset, here Bitcoin. An ETF tracks its underlying financial asset and distributes it in the form of shares before various institutions as well as the individual investors, and provide them with the choice of trading them. According to experts, the inception of Bitcoin ETFs would result in a higher stability of the crypto market, as it is traditionally traded on the stock exchanges.

How did Bitcoin ETFs start, along with dates

The Winklevoss twins had initiated a proposal before the Securities and Exchange Commission to trade Bitcoin ETFs, on the New York Stock Exchange along with Chicago Board Options Exchange. Their proposal was rejected by the Securities And Exchange Commission, as they cited Bitcoin ETFs to be highly regulated in nature.

Their second proposal towards the Bitcoin ETFs with certain modifications also had to deal with rejection on 26th July 2018. The solidX Bitcoin ETF is another Bitcoin ETFs which was proposed, but on August 7th, 2018 the decision regarding this particular Bitcoin ETF was postponed to September 2018. This particular Bitcoin ETF is highly talked about, as it is going to be listed on CBOE which also trades Bitcoin futures.

Further updates concerning Bitcoin ETFs

On August 23rd, 2018, it became apparent that the Securities And Exchange Commission was highly reluctant when it came to giving a green signal to the Bitcoin ETFs. According to the most recent update, on September 20th, 2018, the decision regarding the Van Eck SolidX ETF was again postponed by the SEC, due to its relaxing nature towards the Bitcoin ETF. This particular initiative would result in creating high amounts of liquidity within the Bitcoin market, and indirectly would elevate the functionalities of Bitcoin, in general. Many investors who are reluctant due to the unregulated nature of Bitcoin, might consider investing in it, through Bitcoin ETFs.

Various advantages and disadvantages of Bitcoin ETFs

One must know that this initiative of ETFs is towards the centralized economy and therefore the cost of security must be borne by someone and this burden would be in the form of related transaction fees. This might turn away many institutional investors from this initiative. The decisions of the Security And Exchange Commission is creating market fluctuations in the Bitcoin prices, as most of them consider Bitcoin ETFs to be, highly futuristic. It is to be known that, even if the Bitcoin ETFs would be permitted, then it would be launched not anywhere before January 2019.

Opinions regarding the Bitcoin ETFs through tweets

1. Gabor Gurbacs, director of digital asset strategy at VanEck mentions various pros of Bitcoin ETFs.

“What an #ETF brings to #Bitcoin: -Increased liquidity via the AP & ETF ecosystem -Lower counter-party risk -Better valuation and execution practices”

What an #ETF brings to #Bitcoin:

-Increased liquidity via the AP & ETF ecosystem

-Lower counter-party risk

-Better valuation and execution practices

-Separation of duties: trading, custody, valuation

-Lower fees

-Compliance with global regulations

-Asset mgmt experience pic.twitter.com/R1ACMd3EQ6 — Gabor Gurbacs (@gaborgurbacs) September 18, 2018

2. According to a Twitter handle, ‘Bitcoin ETF’, they are trying to find out the efficiencies of incorporating Bitcoin ETFs,

“ The Holy Grail for bitcoin bulls is a U.S.bitcoin ETF, which would truly bring the cryptocurrency to the masses #bitcoin #bitcoinfutures #bitcoinetf $btc”

3. According to The Element Group,

“ The VanEck SolidX #bitcoinETF represents the last credible hope for a near-term approval of a bitcoin ETF because there are currently no other outstanding applications in the pipeline.”