Wall Street breaks through bitcoin ETF again

Source: for many years, regulators have opposed the issuance of bitcoin exchange traded funds (ETFs) for many reasons, such as market volatility, industry manipulation and liquidity scarcity. But like bitcoin itself, those who want to issue bitcoin ETFs have been fighting. Vaneck associates Corp. is once again trying to issue an ETF that tracks bitcoin, the world’s largest digital currency, according to a filing filed with the U.S. Securities and Exchange Commission on Wednesday. The Vaneck bitcoin trust will reflect the performance of MVIs cryptocompare bitcoin benchmark rate. It’s a bold move for the New York based company. Over the years, the securities and Exchange Commission (SEC) has received many applications to issue ETF tracking digital currency, but all of them have refused. Analysts believe that van Eck may bet that the change in SEC leadership, Jay Clayton’s retirement as SEC chairman, and the growing acceptance of bitcoin by Wall Street will increase the possibility of SEC release. “All the signals from the SEC indicate that getting approval for bitcoin ETFs is still a difficult task,” said Nate geraci, President of ETF store, an investment consultancy. “But Van Eck has the guts to apply, which may indicate a shift in views within the sec. The point of the play is who President-elect Biden will appoint as chairman of the sec. ” In the week of van Eck’s filing, bitcoin has set new record highs. Bitcoin prices rose by about 300% in 2020, attracting the attention of some of the most prominent investors on Wall Street, including Paul Tudor Jones, and mainstream companies such as PayPal Holdings Inc. While fans of cryptocurrency expect prices to continue to rise next year, many are also aware that its dramatic rise could lead to closer scrutiny by regulators. The new sec chairman may be more moderate than Clayton, but Biden has been nominated Janet Yellen as treasury secretary. Yellen once described bitcoin as a “highly speculative asset” and called it “an unstable stored value” tool.

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