Had a discussion with @VentureCoinist that made me think about a few of the reasons why "this time is different" with respect to the $BTC ETF filing coming up from CBOE. Let's dive right in.
So, we know that Bitcoin has had several attempts at getting an ETF traded on institutional exchanges - several failed starts by VanEck and by the Winklevii twins (which was of course shot down)
Reasons: Lack of regulation, low liquidity, low security among others
Reasons: Lack of regulation, low liquidity, low security among others
Since then, we've had a few developments in the space however.
- CME Futures have more than doubled Bitcoin trading volume in the past 6 months across all markets (liquidity)
- CFTC probes are regulating manipulation
- CBOE promises to insure customer holdings (security)
- CME Futures have more than doubled Bitcoin trading volume in the past 6 months across all markets (liquidity)
- CFTC probes are regulating manipulation
- CBOE promises to insure customer holdings (security)
The SEC has also done us the favor of classifying Bitcoin as "not a security" and the CFTC in Q1 of 2018 ruled cryptos as Commodities:
coindesk.com/us-judge-rules…
The result is that the SEC is taking a far lower risk by allowing an ETF to come through.
coindesk.com/us-judge-rules…
The result is that the SEC is taking a far lower risk by allowing an ETF to come through.
I think all signs are pointing towards this ETF getting greenlit - which means we could possibly start trading it as early as 2019. That time differential from an approval and trading will bring in massive speculation - ring a bell?
Strap in, we're just getting started.
Strap in, we're just getting started.
