(August 10), the US SEC will decide whether to approve the Valkyrie Bitcoin ETF and VanEck Bitcoin ETF applications. If approved, it would become the first Bitcoin ETF to receive approval from the U.S. SEC.
In fact, in the article "At least 8 major events in the crypto world in 2019 still have a chance to clear away the haze brought by 2018", we talked about the US SEC passing the Bitcoin ETF as one of the most anticipated things in 2019. But so far nothing has passed. Why?
01
What is the Bitcoin ETF? The full name of
ETF in English is Exchange-TradedFund, also called exchange-traded open-end index fund. As an investment class, it has a history of 25 years. As of August 2018, global ETF assets have reached US$4.8 trillion and are a very mature financial derivative. When
purchases ETF products, it is not the actual assets, but tracks multiple asset price indexes.
Take gold ETF as an example. The gold ETF foundation invests most of its funds in gold assets, so the price of ETF is closely related to the price of gold. If you buy a gold ETF, it is equivalent to investing in gold. At the same time, ETFs can be traded in the stock market and have the characteristics of low investment threshold (you can trade with just a few hundred yuan), low commissions, good liquidity, and simple trading operations.
refers to the Bitcoin ETF of gold ETF, and the principle is similar.
02
What does it mean for Bitcoin ETF to pass the US SEC?
If the Bitcoin ETF can pass the US SEC review and be officially launched, on the one hand it represents compliance, which means that existing investment institutions and individual investors can directly purchase Bitcoin ETFs on the stock exchange, greatly reducing investment in the crypto market. threshold. You don’t need to actually purchase and keep the Bitcoin assets, nor do you need to take on the custody risk of the keys.
In short, if the Bitcoin ETF can be officially launched, it will become one of the asset allocation choices for institutions and individuals, absorbing considerable incremental funds for the cryptocurrency market; it is conceivable that the increase in admission funds will bring What's the result?
Some big names also expressed similar optimistic views:
DFJ Fund founder Tim Draper: Bitcoin ETF will be approved within one or two years;
Fundstrat founder Thomas Lee: If Bitcoin ETF may be approved, Bitcoin may Back to the all-time high.
So it is not difficult to understand why the market is full of expectations for the approval results of the Bitcoin ETF.
However, in a financial market with insufficient funds, the problem of insufficient liquidity is most likely to occur, and transactions cannot be completed quickly. In addition, due to the small market capitalization, market prices are easily manipulated, coupled with risks such as imperfect cryptocurrency regulation, which is enough to put many traders and institutional funds into trouble.
Due to the above reasons, the US SEC also issued an open letter and repeatedly rejected applications for Bitcoin ETFs.
Bitcoin today’s market
#OUYiOKEx# #Bitcoin[超话]# #digital currency#
