While the US Securities and Exchange Commission is considering the issue of recognizing a cryptocurrency fund from VanEck and SolidX, it has already received another application. This time Bitwise decided to start Bitcoin-ETF.
The world's first cryptocurrency index fund Bitwise Bitcoin Total Return has applied for registration of a financial contract Bitwise Bitcoin ETF. Its peculiarity is the linking of prices not to the physical value of individual cryptocurrencies, but to the value of securities. The head of the company, John Hyland, is confident that in 2019 the SEC will approve the creation of cryptocurrency funds. If a new financial instrument is created, it will begin to trade on the NYSE Arca stock and options exchange.
At the same time, Highland recognizes that so far he has no confidence in a positive decision regarding the application submitted. The US Securities Commission adheres to very strict rules for such contracts. Now the market is waiting for a decision on the treatment of VanEck and SolidX. Already on January 27, the SEC will have to give a final answer. The commission postponed consideration of this issue twice, and now the law requires certainty from it.
The decision made can lead to significant volatility in the cryptocurrency market. The fact is that institutional investors are now faced with certain difficulties. Charters of the funds do not allow them to buy assets not authorized by the SEC. Therefore, as soon as such an opportunity arises, the digital financial assets market expects an increased liquidity inflow.
We have to admit that otherwise, Bitcoin quotes may be under pressure. Now the situation is extremely uncertain, which causes increased nervousness in the market. The application from Bitwise is not capable of changing it drastically, but it allows to look to the future more optimistically.