The world’s second bitcoin ETF approved: bitcoin changed? How to affect currency price

Only a few days later, the world’s second approved bitcoin ETF (trading open-end Index Fund) was exposed. On February 16, evolve funds Group Inc, a Canadian fund management company, announced on its official website that it was allowed to launch bitcoin ETF. The company said that it had submitted a prospectus for issuing bitcoin Exchange Traded Fund (ETF) and would conduct trading in two codes of “EBIT” and “EBIT. U” of Toronto Stock Exchange. According to the prospectus, the ETF is established under the laws of Ontario. “Bitcoin ETF is exciting news for investors,” said Raj Lala, President and CEO of evolve ETF. Investors will be able to trade bitcoin on a regulated stock exchange, as simple as buying shares through a bank or broker. EBIT will provide daily liquidity, transparency and security for direct purchase of bitcoin through a standardized ETF structure. ” On February 12, Reuters reported that pure investments Inc., a Toronto based asset management company, said in a statement that the Ontario Securities Commission (OSC), Canada’s main securities regulator, had approved the launch of bitcoin ETF, making it the first bitcoin ETF approved in the world. The news was confirmed by the OSC. Bitcoin ETF: to help investors obtain “liquidity” and “asset security”. This event mainly shows that bitcoin has gradually entered the vision of mainstream investment funds. In fact, there were many institutions that wanted to invest in bitcoin before, but they always lacked a legal investment tool. ” One bitcoin investor told surging journalists. The full name of ETF is exchange traded fund, which belongs to open-ended fund. It can be traded in the stock exchange. Fund management companies can sell new fund units to investors at any time, and also need to buy back the fund shares held by them at any time at the request of investors. The launch of bitcoin ETF means that more public investors will have the opportunity to invest in bitcoin. Prior to bitcoin ETF, the Chicago Mercantile Exchange (CME) launched bitcoin futures in 2017, and the Toronto Stock Exchange already has bitcoin closed-end funds that can be traded. Arthur Salzer, chief executive of Northland wealth management, said ETFs could provide investors with some advantages, such as buying at a net asset value rather than at a premium. “The OSC is right to consider ETF, which eliminates some disadvantages of the original closed-end fund,” Reuters reported Gu Yanxi, founder of Liyan consulting company and researcher in blockchain and encrypted digital assets industry, told surging journalists that mass traders can hold their underlying assets by holding ETF shares. And these ETF shares are held by the regular custody institutions. As a result, the public investors can obtain both the liquidity in the stock market and the asset security provided by the custody institution. Yu Jianing, chairman in office of the Special Committee on blockchain of China Communications Industry Association and President of Huo coin University, believes that the difference between traditional ETFs and bitcoin ETFs lies in that most of the traditional ETFs are index funds and do not need to bear the cost of discretionary active portfolio management. Traditional ETFs are even cheaper than index mutual funds for individual investors. In addition, the traditional ETF not only has the advantages of diversified investment targets of mutual funds, but also has the characteristics of flexible trading of stocks. But bitcoin ETF is more about anchoring the price of bitcoin. In fact, bitcoin can also be traded quickly in the secondary market, but it is more friendly to institutional funds at the compliance level. Compared with the impact of the price of bitcoin, Yu Jianing believes that the successful approval of bitcoin ETF means that bitcoin can be purchased indirectly as long as there is a compliant stock account. For the bitcoin market, users will upgrade by an unimaginable order of magnitude. Retail investors and institutions of traditional finance can buy a large number of bitcoin, and the market will usher in another dimension of upgrading. “If ETF based on bitcoin is issued and circulated, it will definitely lead to a large amount of user funds entering bitcoin, so the price of bitcoin will be greatly increased.” Gu Yanxi believes that this rule can be seen from the impact of gold ETF on gold prices. The above-mentioned bitcoin investors also said that the approval of bitcoin ETF means that mainstream funds have a compliant investment tool. Individual investors and institutional investors can allocate part of their funds to bitcoin to bring new funds to bitcoin. Therefore, bitcoin prices will rise, “after all, the total market value of bitcoin is still very small”. Between the approval of the two bitcoin ETFs, according to the bitcoin news network coindesk, the bitcoin price reached the $50000 mark on February 16, and the highest price hit $52621 on February 18. It is still constantly setting new records, and its market value has surpassed Tencent. The decentralization attribute will weaken? These bitcoin investors said that with the entry of institutional funds such as gray funds, large enterprises and bitcoin ETFs, the real bitcoin will be more and more concentrated in the hands of institutions. “A lot of real bits are locked into paper bitcoin, which is similar to paper gold. This is actually weakening the decentralized nature of bitcoin. ” He said. The investor pointed out that bitcoin has two biggest attributes, one is investment, the other is to ensure that personal property is not infringed by technical means. However, with the launch of bitcoin ETF, it only has the investment function and lacks the anti regulatory function. When there are more and more bitcoin in the hands of institutions, it can also be seen that regulators are weakening the “anti regulatory” function of bitcoin. However, Yu Jianing believes that in fact, the decentralized nature of bitcoin is due to its working mechanism. No matter who holds these bitcoins, the miners will finally pack these transaction records into the chain and record these information on the chain through decentralization. “Due to the decentralization and anti censorship characteristics of bitcoin, countries have always maintained a more cautious attitude in regulation, which has hindered the global development of bitcoin,” he said Or it will boost the United States and other countries to launch bitcoin ETF. “This will have a good role in promoting the United States to launch bitcoin based ETF.” Gu Yanxi said. He pointed out that several companies in the U.S. market are already applying for bitcoin based ETFs, including van Eck, Morgan Stanley and nydig. These applications started at the end of December last year, so the frequency of bitcoin based ETF applications in the U.S. market has significantly accelerated. According to Reuters, eight companies have applied for ETF since 2013, but none has been approved. The securities and Exchange Commission seems to be focusing on the possibility of market manipulation and the custody audit process to verify that funds hold their claimed assets. Yu Jianing also believes that the approval of bitcoin ETF in Canada means a slight change in the regulatory attitude. Although this is not approved by the US SEC, if Canada’s ETF can develop well, it may alleviate the concerns of the US SEC to a certain extent. In fact, Gu believes that similar products are already available in the U.S. market. Retail users can buy and buy bitcoin through apps like PayPal and square, or buy and sell bitcoin on trading platforms such as coinbase and Kraken. Institutions can also hold bitcoin by buying gray scale trust fund shares. So in the U.S. market, retail and institutional users in the United States can already buy and sell bitcoin related products. “In addition, whenever such products appear in the market, then there will be a number of companies applying for issuance in a centralized manner. This situation can be seen from the gray-scale trust funds.” Yu said. He also said that according to the documents uploaded to SEDAR, other proposed bitcoin ETFs may also be moving towards approval, including the initial decision documents submitted by horizons ETF Management (Canada) Inc., arxnovum investments Inc. and accelerate financial Technologies Inc. (this article is from surging news. For more original information, please download the “surging news” app)

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