The digital currency space has been highly anticipating to the news regarding the approval of a Bitcoin (BTC) ETF (exchange-traded fund) by the end of this year. This has greatly impacted the values, as well as the volumes, of digital currencies in the market.
The Possible Impact of a BTC Exchange-Traded Fund on the Crypto Space
A BTC ETF has the potential of opening a floodgate of capital from individual accredited investors to retail traders in the United States public market. Unlike direct investments on digital currency trading platform, BTC ETF issuers are responsible for insuring and protecting the investments of investors, as a trustworthy intermediary.
Therefore, investors that were scared of putting their funds into the digital currency due to compliance and security concerns, will likely invest in the digital currency via ETFs. A lot of analysts, researchers, and investors in both the digital currency market and the conventional finance sector have been optimistic regarding the approval of a BTC ETF.
One of the four stars of Shark Tank – Kevin O’Leary – who have been cynical about Bitcoin’s regulatory aspect since last year, said that the approval of a BTC ETF could potentially increase the commitment of institutional investors to the market in the nearest future.
Nevertheless, CNBC’s Fast Money contributor and the CEO of BKCM – Brian Kelly, has said that the first BTC exchange-traded fund won’t be approved this year due to the history of the Securities and Exchange Commission of delaying BTC ETFs and other newly emerging digital assets. He said he hopes that it is approved, but the chance of it being approved this year is very slim.
Bitcoin (BTC) Price Today – BTC / USD
At the time of writing, Bitcoin (BTC) is trading at $8,265. The current market cap of the digital currency is $140.90 billion and its trading volume over the past twenty-four hours is $5.37 billion.