In recent days, all the attention of the crypto-community has been focused on the US Securities and Exchange Commission (SEC), which in the first half of August was supposed to answer the question, whether there will be the bitcoin-ETF. However, the Commission was not ready to put an end to this issue and extended the deadline for the decision to 30 September. Why does the SEC need additional time for reflection and why are all people waiting for the bitcoin ETF?
In order to answer this question, first of all, it is necessary to understand what the ETF is. In a broad sense, it is a fund within which there are packages of a variety of assets and which can be freely traded on the stock exchange. There are ETFs specializing in stocks of pharmaceutical companies, high-tech, raw materials sector and so on. ETF portfolios are well diversified, so investments in such funds are considered to be among the most reliable and therefore attractive for institutional investors, such as pension funds.
With regard to bitcoin, ETF will be a stock exchange fund for which this cryptocurrency will become the underlying asset. That is, the fund will buy bitcoin and sell its shares to investors. Thus, investors will reliably protect their assets, as they will be relieved of the need to work with cryptocurrency directly through exchanges that have repeatedly demonstrated low security for hackers.
Why is the SEC of the US took a timeout for making a decision on the bitcoin ETF? Because this is a very serious step, on which the future of the cryptocurrency community largely depends. There's a lot of money at stake. According to the most conservative estimates, the permission to launch bitcoin-ETF by the end of 2018 due to the arrival of institutional investors can raise the total capitalization of the cryptocurrency market by $500 billion. At the same time, it is obvious that the lion's share of this increase will be in bitcoin, which will more than recoup the losses of the last months