Recently, there was a report that the FSA (Financial Services Agency) of Japan is considering to give the first Bitcoin (BTC) ETF (Exchange-traded fund) a green light. Over the past year, the U.S SEC has rejected several Bitcoin ETF applications from different companies.
However, many have been wondering if the approval of an ETF for Bitcoin (BTC) in Japan could have an impact on the verdict of the U.S SEC, with the final deadline of the VanEck Bitcoin (BTC) ETF in the horizon. According to some analysts, the approval of a Bitcoin (BTC) exchange-traded fund would have a tremendous effect on the value of Bitcoin (BTC). It would significantly enhance the value of the digital currency.
Will an ETF for Bitcoin (BTC) Be Approved in the United States?
The chances of a Bitcoin (BTC) exchange-traded fund being given a green light in the United States by February is very low. Hester Peirce – a pro-crypto SEC – recently said that investors should not wait on an exchange-traded fund for Bitcoin (BTC) because it may take months or years for the agency to approve it.
Whether the exchange-traded fund is giving a green light or not, the filing of an ETF by VanEck will provide more clarity on the subject. In the second half of last year, twelve Bitcoin (BTC) exchange-traded fund applications filed by the Winklevoss twins and three other firms were rejected by the U.S Securities and Exchange Commission.
The Winklevoss twins tried to launch an exchange-traded fund using digital currency trading platforms to calculate the base price of the digital currency and the three firms relied on the BTC futures market to develop an ETF. The U.S. SEC rejected all the proposals because they believe that both the futures markets and crypto trading platforms are not of significant size.
The ETF of VanEck utilizes data from the OTC (over-the-counter) market, and this is known to be bigger than the digital currency trading platform market in terms of trading activity and volume. Irrespective of the result, it will lead the U.S. SEC to assess the global digital currency OTC market.
Governments across the Globe are Implementing Strict Policies on the Market
Malta, South Korea, Japan, Singapore, and some other countries have implemented strict policies on AML (Anti-Money Laundering) and KYC (Know Your Customer). This is done to monitor suspicious transactions and to block anonymous accounts from buying or selling digital currencies.
Back in November 2018, Jay Clayton – the chairman of SEC – said that technologies and safeguards to prevent suspicious transactions are not yet in existence in overseas markets.
In a statement, Clayton said, “Such kinds of safeguards do not exist in many of the markets where cryptocurrencies trade.”
With the move of the G20 and the lead of Japan to regulate digital currencies, a lot of top Bitcoin (BTC) and digital currency markets have implemented several safeguards. Some regions, such as South Korea, have instigated stricter rules than other regions such as the United States. Especially on the prohibition of unidentified individuals and foreigners from trading digital currencies with the native currency of Korea – won.
Bitcoin (BTC) Price Today – BTC / USD
At the time of writing, Bitcoin (BTC) is changing hands at $4,150 after an increase of about one percent over the past twenty-four hours. The current market cap of the digital currency is $70 billion and its trading volume over the past twenty-four hours is $3.34 billion.