Investors have bitcoin funds through the examination and approval of the preparation?
The United States Securities and Exchange Commission (SEC) is expected in the next month on the temperature clervaux Jonas Brothers (Winklevoss) bitcoin ETF (exchange traded funds) to make the final decision. However, according to a survey of most CoinDesk analysts, traders have ruled as a fact of life through the reaction in the price of bitcoin.
In 2013 July, graduated from Harvard University, Winklevo brothers submitted an application to the SEC, plans to launch the world’s first with bitcoin related to securities products, through the issuance of bitcoin ETF investors don’t really need to buy bitcoin can get profit. However, after repeatedly delayed the approval of its SEC line, after nearly four years of waiting, SEC will be decided in March 11th this year the Winklevo brothers can ETF bitcoin transactions in Bats global exchange.
A new document submitted by Winklevo’s latest show, the bitcoin ETF issue size has increased from $65 million to $100 million, while the number of shares also increased from 1 million shares to 10 million shares.
Some market observers believe that if the fund is approved, bitcoin ETF as a convenient tool for investment, may lead to large capital inflows and lead to a strong rise in price. Therefore, the final decision will be made in March 11th SEC has received traders collective attention.
Bitcoin or ETF can boost the bitcoin Market
Some analysts believe that the Winklevo brothers on-line bitcoin ETF can open a traditional investment path for this asset class. The individual and institutional investors do not have deposit risk continue to bear the key, more do not have to use unregulated online exchange and the custodian and worry. In view of the current international exchanges on the spot price is not uniform, bitcoin ETF can create more accurate market pricing for the digital currency.
Bitcoin leveraged trading platform chief operating officer PetarZivkovski said: if the temperature clervaux, ETF or any other bitcoin ETF approved, bitcoin prices are likely to rise in the next couple of months or years. He pointed out that when the ETF after the listing, the only other commodities, gold and silver prices will also be supported, bitcoin ETF can open the pension and pension fund gate, which represent the value of trillions of dollars in the market.
Bitcoin leveraged trading platform co-founder and CEOArthurHayes have also made some optimistic remarks, he said that the approval of SEC can make some foreign regulators approved similar financial products, it will have a huge impact on digital currency.
Traders said JacobEliosoff algorithm, the approval of the SFC will stimulate investor interest and lead to rising prices, “I expect the approval of ETF will lead to mainstream investors and institutional investors in capital inflows. Although the probability is low, but once through, earnings will be huge.”
Optimistic and pessimistic attitude.
Although many market observers bitcoin ETF approval brings hold different opinions, but many people agree with Winklevo brothers bitcoin fund will be in the next month through examination and approval. Most traders are optimistic.
Bitcoin Chinese CEO Li Qiyuan holds the same view, he said, “clervaux, ETF temperature had a greater chance of approval.”
However, not everyone is so sure. Winklevo ETF may encounter some potential barriers.
SEC had to Wink Rivers brothers that many need to consider the potential risks, including whether the fund will be hacked or whether there is a risk of bitcoin split into two encryption currency. This is why the fund for approval time for more than three years.
Although some analysts said Winklevoss have solved security problems, for example, the private key is stored in the offline mode, and locked in a safe place, use multi signature to prevent theft. However, even in this period, some problems still exist in suspense.
For example, bitcoin ETF how to meet the liquidity requirements of the bitcoin market, and Wenkelifusiji ETF will provide insurance for hackers?
In addition to the limited number of bitcoins in circulation, ETF may be spawned demand bubble, there are fears that the bitcoin volatility will increase the market ETF. In the past few weeks, bitcoin has experienced price volatility, the price fell to $750 after soared to $1150.
There is no doubt that in this period, the Commission has been on the sidelines. If bitcoin fund performance is good, the staff responsible for the approval and cannot be accepted, but once the fund performance is bad, they will face serious consequences, which will lead to SEC without bitcoin funds actively support much. In addition, SEC may be more reason to refuse to approve bitcoin ETF. Among them, the “imitation effect” — foreign regulators follow the behavior of SEC – SEC may be refused to nod to the fund eventually one of the reasons.
In addition to the Winklevo brothers bitcoin fund, another two funds also made a similar application. They are Barry Hilbert (BarrySilbert) bitcoin investment trust (BitcoinInvestmentTrust), provided by SolidXPartners SolidX bitcoin trust, the two funds are also waiting for the U.S. Securities and Exchange Commission approval.
Although no one can guarantee that the application will succeed. But the observation that most bitcoin, bitcoin ETF eventually approved. When that day comes, it may set off the boom again in a mad market.