A main reason for the rejection last year was that the Bitcoin markets were “unregulated” and partial. The first Bitcoin futures have been running for a year now, custody solutions are in the pipeline and the SEC itself has made it clear that Bitcoin and Ethereum are the “model of decentralised nature” and therefore not classified as securities, so there is no need to regulate these markets additionally.
In addition, crypto currency exchanges are imposing increasingly stringent requirements in connection with know-your-customer and anti-money laundering, which means that a certain regulatory framework is in place and will become increasingly apparent in the long term.
Bitcoin revolution a possibility
All this suggests that banks and the government are all looking for a part of the expanding Bitcoin revolution market and a regulated listed fund would certainly help in this regard of the Bitcoin revolution.
CEO Jan van Eck of Van Eyck Investment and SolidX noted that the “insurance component” of the Bitcoin Trust would help protect investors from the risks. Meanwhile, Andy Hoffman of CryptoGoldCentral.com believes that the recent submission by the Cboe has generated enthusiasm despite the current declining trend in crypto currency markets.
If the SolidX Bitcoin Shares ETF is approved on August 10, it is likely to trigger a massive explosion in the Bitcoin price – and the crypto currency area in general.
Bitcoin Bull Run thanks to Bitcoin trader?
We’ve already reported on the hedge fund Bitcoin trader, who believes a price of $70,000 in the next Bull Rally is quite possible as many other Bitcoin trader.
The Bitcoin ETF is probably the most important reason when it comes to triggering a Bitcoin Bull Run. The introduction of the futures last year in December has initiated a real buying rally. But in contrast to the Bitcoin futures, the ETF is actually covered by Bitcoins. One SolidX share (Bitcoin ETF) equals 25 Bitcoin.
Traditional investors now have the opportunity to simply invest. Another important point of the Bitcoin ETF from CBOE is that the deposits are insured and investors therefore do not have to fear a hacker attack, for example, which greatly reduces the entry barrier.
If the ETF goes through, which I think is very likely, it could mean a massive capital injection that will boost the entire crypto currency market.