A few hours ago, the cryptocurrency and investor communities were notified of the delay by the Securities and Exchange Commission (SEC) to rule on the pending VanEck Bitcoin ETF until February 27th. Some have even linked the announcement to the current blood bath in the crypto markets that has the total crypto market capitalization at $108.68 Million with BTC trading at $3,433 ahead of a shakey weekend. Ethereum (ETH) has dropped under $90 and is trading at $87.
The only coin in the top 100 doing well is Bitcoin SV (BSV) that is up 19% in the last 24 hours. BSV has also managed to flippen Bitcoin Cash (BCH).
Why The VanEck ETF is Significant
The VanEck Bitcoin ETF has been viewed by many as the much needed catalyst that could ignite the next cryptocurrency Bull run. An ETF would be an indirect stamp of approval by the SEC that classifies BTC as a viable investment asset. It will set the stage for other ETFs backed by other prominent digital assets such as ETH or a combination of digital assets.
Why an ETF Might Be Approved in February
Firstly, we saw that MV Index Solutions – based in Frankfurt Germany and linked to VanEck – launched the MVIS Bitcoin US OTC Spot Index (MVBTCO). This index is based on price feeds from OTC (Over The Counter) digital asset trading operations in the US carried out by the firms of Circle Trade, Cumberland and Genesis Trading.
By opening up their books, markets will better understand the price movements of BTC and other major cryptocurrencies. The additional transparency might aid in the SEC approving the ETF next year.
Secondly, Bakkt would have launched its physically settled Bitcoin Futures contracts by the end of January. This will increase the confidence in Bitcoin across the investor communities that comprise of hedge funds, high net individuals and even the regular investor who had stood on the side-lines waiting for some ‘sanity’ to present itself in the crypto-verse.
Nasdaq is also meant to launch their Bitcoin Futures products in the first quarter of 2019. Both Nasdaq and Bakkt probably have the go ahead from the CFTC (Commodity Futures Trading Commission) thus adding validity to Bitcoin.
Thirdly, the New Year brings with it the possibility of the Commissioners at the SEC having a change of heart about the pending ETF. Perhaps the Holiday Season will recharge them to the point where they see the validity of the application by VanEck. We have to remember that 2018 has been a long year and we all need some time to recharge.
A Word Of Caution from Commissioner Hester Peirce
However, Commissioner Hester Peirce – also known as crypto mom – has cautioned crypto ethusiasts and investors not to wait on the ruling of the SEC as it might take a long time for the regulatory body to approve it. She explained that the SEC has 5 commissioners and a majority ruling is needed for an ETF to pass.
Don’t hold your breath. I do caution people to not live or die on when a crypto or bitcoin ETF gets approved. You all know that I am working on trying to convince my colleagues to have a bit more of an open mind when it comes to [crypto]. I am not as charming as some other people
In conclusion, the SEC announced that they would be pushing the ETF decision to February 2019. We have explored three reasons why the odds might be in favor of an approval next year. We have looked at the MVIS Bitcoin US OTC Spot Index; both Bakkt and Nasdaq offering futures contracts; and we have also looked at the possibility of the Commissioners having a change of heart with the new year. However, we were reminded by Commissioner Peirce not to depend too much on the decision.
What are you thoughts on the new date of February 27th as the new deadline fro an ETF decision? Do you think it will be approved? Please let us know in the comment section below.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.