The future of Bitcoin ETF will be decided on August 10. The SEC is currently asking for comments regarding the listing and trading of Bitcoin ETF introduced by VanEck SolidX Bitcoin Trust that will only be available to accredited investors.
This decision by the SEC will potentially open a path for trillions of dollars worth of investments and could further cement the use of cryptocurrency in the FinTech sector.
The official website of SEC states, “Comments on Cboe BZX Rulemaking” in regards with the “Notice of Filing of Proposed Rule Change to List and Trade Shares of SolidX Bitcoin Shares Issued by the VanEck SolidX Bitcoin Trust”.
According to the CEO Jan van Eck,
“We believe that collectively, we will build something that may be better than other constructs currently making their way through the regulatory process. A properly constructed, physically-backed bitcoin ETF will be designed to provide exposure to the price of bitcoin, and an insurance component will help protect shareholders against the operational risks of sourcing and holding bitcoin.”
To buy just one share would be buying the equivalent of 25 Bitcoin, many can imagine that this is only for accredited investors.
Several companies have attempted this in the past but with no notable success, due to high market volatility authorities were reluctant to allow these companies to move ahead with these plans.
If SEC does give its nod of approval for the ETFs, it would mean an indirect green light to mainstream investment in altcoins as well. This would eventually bring funds in trillions in the crypto market.
Depending on if the SEC will give approval of this, this could give a clear go-ahead to mainstream investments, this could, in turn, bring a surge of activity to the crypto markets and turn the bear back into a bull.