While the price of Bitcoin continues its downtrend, it’s safe to assume that institutional investors are waiting for the holy grail of all catalysts: a Bitcoin exchange-traded fund. According to one expert, you can see the prized ETF on the horizon — if you squint hard enough and get out your binoculars.
Patience is a Virtue
The US Securities and Exchange Commission continues to drag its feet in regards to a Bitcoin or cryptocurrency exchange-traded product. However, Bitwise Asset Management’s global head of exchange-traded products, John Hyland, believes we’ll be seeing the major market catalyst “sooner rather than later.”
When asked by ETF.com about the likelihood of seeing a bitcoin or cryptocurrency ETF in the near future, Hyland responded:
I think we get them sooner rather than later. But I also think that if we don’t see any action by the SEC in the next two months, we’ll jump to 2019 and beyond. I don’t see the SEC going from red light to green light anytime near the midterm election. It’ll make them gun-shy.
I handicap the odds of a U.S. ETP in crypto as follows: 20% chance in 2018; 60% chance in 2019; and a 20% chance beyond 2019.
Waiting until next year might not seem like an attractive prospect to those eager to see Bitcoin once again go parabolic, but institutional investors are unlikely to enter the cryptocurrency market without proper regulatory measures and hand-holding.
That said, once the first Bitcoin ETF gets approved, it will be off to the races for other cryptocurrency offerings. Explained Hyland:
…from the regulatory standpoint, if you’ve accepted the argument that a futures-based bitcoin product can be declared effective, on what grounds do you then turn around and deny the next three or four issuers?
Everybody who has the same outline of a product is going to probably be declared effective in roughly the same small time frame.
Once the floodgates have opened, Bitcoin may finally change direction.
Do you think we’ll see a Bitcoin ETF in 2018, or will we have to wait until 2019? Will Bitcoin experience a true bull run before ETFs are launched? Let us know your thoughts in the comments below!
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