Bitcoin’s Race to Wall Street

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Bitcoin for the masses. It’s a tantalising prospect for the crypto community at large. Whether you already own bitcoin or want to get involved, the latest rumblings from Wall Street should be good news.

Bitcoin ETF Could Be Approved Soon

A couple of institutions have been pushing for a bitcoin exchange-traded fund (ETF) in the US for a while now. The US Securities and Exchange Commission (SEC) has been hesitant but a bitcoin ETF could be approved very soon. What does that mean? Well it means we could see a lot more money flooding into bitcoin very quickly.

It’s no secret that bitcoin still has a few technical hurdles that put-off some investors. It’s not as simple as ringing up a stock broker and telling them where to put your money. An ETF will certainly change that.

The one thing to note though is that these early ETFs are likely to be futures-based. The reason for this is because a futures-based ETF never possesses the physical good. It means investors never have direct exposure to the underlying asset. Which is why the SEC is more likely to approve a futures-based ETF for bitcoin.

In Europe, they already have two bitcoin derivatives. Dubbed an exchange traded note (ETN), they track bitcoin’s movement against the US dollar. These are the funds that JP Morgan and Morgan Stanley are already using for clients looking to invest in bitcoin.

Dave Nadig, CEO of ETF.com believes it’s only a matter of time before the US follows suit. He comments,

Yes, you can already trade a derivative in Europe, an exchange traded note which tracks Bitcoin,

Then the race in the U.S. is the race to see what gets approval first. Will it be a Bitcoin future or a straight up Bitcoin holding ETF? My bet is that we will see Bitcoin futures approved fairly quickly.

There are currently two front-runners vying for the title of the US’s first bitcoin ETF.

VanEck, who plan to have an ETF that will have 25% of its holdings in bitcoin derivative instruments, recently filed with the SEC but no official response has been issued yet.

Meanwhile the Winklevoss twins (the guys who sued Mark Zuckerberg for stealing their idea), are also competing to make a bitcoin ETF. They lodged an application with the SEC earlier this year, but it was rejected. The pair aren’t deterred though, as they have already reapplied.

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Bitcoin on Wall Street, Only a Matter of Time

It looks set to be only a matter of time before bitcoin is rubbing elbows alongside the big names in Wall Street. It’s certainly going to make headlines one way or another. And we all know by now just how much headlines have an impact on crypto prices.

So don’t get left behind — Get in before the masses. The Secret World of Bitcoin might not be so secretive for much longer.

Regards,

Ryan Clarkson-Ledward,
Junior Analyst, Money Morning

Ryan Clarkson-Ledward

Ryan Clarkson-Ledward

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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