One of the most curious topics in crypto money markets is Bitcoin ETFs. Bitcoin ETF will be an important channel for institutional money to enter the cryptocurrency markets for many investors.
VanEck Bitcoin ETF application is online!
There is no significant development to be experienced in the Bitcoin system until 2024 for now. In May 2024, a new halving will occur, and the daily supply of Bitcoin will decrease from 900 to 450 BTC. Perhaps the most important development concerning Bitcoin before this date will be the US Securities and Exchange Commission (SEC) approving any company’s Bitcoin ETF.
VanEck continues to persistently apply for a Bitcoin ETF. The SEC did not give the green light on ETFs since 2019. The year 2020 was a bit calm for Bitcoin ETFs with the impact of the Corona Outbreak. However, 2021 is expected to be very busy. Several Bitcoin ETF applications have now been made.
The US Securities and Exchange Commission published VanEck’s application. Our readers can access the VanEck Bitcoin ETF application by clicking the link. After 45 days, the SEC will either make a decision or postpone its decision.
In 2019, the SEC rejected an application, after which other businesses withdrew their applications. In the SEC rejection justification, there was a serious emphasis on manipulations in the market.
Bitcoin ETFs will also be traded on regulated exchanges such as Bitcoin, New York Stock Exchange and CBOE, if approved by the SEC. In this way, corporate firms and pension funds will be able to more easily purchase Bitcoin Mutual Funds (Bitcoin ETFs).
Bitcoin ETFs have been accepted in a few countries such as Canada and Switzerland, but accepting ETFs in the USA will have a more serious effect.
So far, corporate firms have been able to invest in Bitcoin from various platforms without Bitcoin ETFs. Still, if approved, the Bitcoin ETF will be an important milestone.
There was a noticeable increase in Bitcoin ETF applications in March: Herald of what?
Throughout the year 2020, there has been almost no US-based Bitcoin ETF (Bitcoin exchange fund) application. In 2021, conditions started to change. Institutional companies are announcing that they have invested in Bitcoin one after another, and Bitcoin prices are running from record to record.
The vitality in the Bitcoin markets has begun to be observed in Bitcoin ETF applications. In early March, we learned that VanEck filed a new ETF with the US Securities and Exchange Commission (SEC). The second application news came from New York-based investment firm Wisdom Tree.
Wisdom Tree made its application on March 11. Wisdom Tree plans to launch the Bitcoin ETF investment product under the BTCW label on the CBOE (Chicago Commodity Exchange).
The price of BTCW will be determined by instant prices drawn from US-based crypto money exchanges.
Wisdom Tree has been interested in cryptocurrency markets and Bitcoin since 2019. The firm mainly invests in agriculture, energy and precious metals. Deciding to enter the Bitcoin markets in June 2020, the investment firm announced that it could allocate approximately 5% of its portfolio to Bitcoin futures contracts.
In early 2020, Wisdom Tree listed the first physical Bitcoin trading fund on the Swiss-based SIX exchange. However, US markets are more discreet about Bitcoin than Swiss markets. So far, there is no approved Bitcoin ETF in the US markets yet.
If the U.S. Securities and Exchange Commission approves Bitcoin ETF applications, it could be a turning point for Bitcoin markets. In this way, public and private institutional firms will be able to purchase financial assets extracted from Bitcoin from regulated exchanges such as the New York Stock Exchange and CBOE.