Canaccord, an important investment firm from North America (Canada), believes that the market will not see a Bitcoin ETF approved in 2018. The information has been released in an official report entitled: “Blockchain and Digital Assets: US Equity Research.”
Bitcoin ETF Must Wait Until 2019
On August 7, 2018, the U.S. Securities and Exchange Commission decided to postpone a decision on whether to approve the ETF proposal known as VanEck SolidX Bitcoin Trust.
The report presented by Canaccord and the researchers Michael Graham and Scott Suh says that other Bitcoin ETF are being developed in Canada and could be available in the near future.
The report explains:
“And although the VanEck SolidX Bitcoin Trust, seen by many as the most formidable candidate for a potential approval, is due for a potential decision as early as this month, it is largely believed that the SEC will extend its deadline, in which case a decision may not be made until March 2019. Meanwhile, we note that other bitcoin-based securities (e.g., Bitcoin Tracker One) have been available for trading on regulated exchanges as early as May 2015 in Sweden, while north of the border, Canada is working towards its own bitcoin ETF product, the Evolve Bitcoin ETF.”
In general, the SEC has been reluctant towards approving crypto-related ETFs in the past. Furthermore, companies do not disclose their decision until the final deadline, regardless of the outcome they’ve decided on the matter.
That means that even if there is a high chance of approving a Bitcoin ETF, it may not be announced until February 2019. At the moment, the decision of the SEC had a very negative impact in the cryptocurrency market that was waiting for a price increase and a bull run.
For example, Bitcoin is now traded close to $6,500 dollars and has lost 20% since July 30. The effect in the market has been very hard, but in the long the prospect remains bullish for the famous virtual currency.
If institutions want to enter the market, they need services in which they can rely on, that are safe and regulated by the most important agencies around the world. And indeed, companies such as Coinbase and Ledger have been working in order to develop institutional products to help these firms feel comfortable in the market.
“The arrival of a potential bitcoin ETF remains top of mind for institutional investors seeking exposure to this emerging asset class, and there are now multiple applications pending approval by the SEC, most notably that proposed by Van Eck/SolidX,” Canaccord researchers noted.
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