There’s optimism surrounding the crypto market again. Gone are the days when Bitcoin was only trading below $6,000. From institutional investors to Bitcoin being approved by the US SEC, these are some of the positive things that happened to Bitcoin recently.
Bitcoin has soared to more than the $8,000 mark. And one of the reasons is that the US Securities and Exchange Commission is reportedly looking to approve Bitcoin exchange-traded funds. However, if you will look at public documents, it looks like US SEC is going to decide on the matter by September.
According to the Federal Register, the agency explained that it is postponing the decision regarding the possible approval of the proposals as filed by Direxion Investments last January. The SEC stated that “The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change. Accordingly, the Commission,…designates September 21, 2018 as the date by which the Commission shall either approve or disapprove the proposed rule change”.
ETF Approval is Insane?
A lot of people from the crypto community are excited regarding the possibility of having Bitcoin ETF. This will allow users to no longer go to crypto exchanges in order to buy Bitcoin. And considering the number of hacking incidents in the industry, this could actually be a good thing. However, Michael Cohn who is the chief investment strategist for Atlantis Asset Management thinks that the approval would actually be considered “insane”. He said that “then they’re putting a rubber stamp on it as an asset, and I don’t think governments want to go there yet. It just seems as though it’s not something I’d want to put my clients into in any way, shape or form. You can only be embarrassed”.
VanEck and SolidX were the ones that have submitted their proposals. And these are under discussion and have received a lot of comments. Its decision is expected to come out as soon as the coming month.
US SEC Accepting Cryptos?
The US SEC could actually be approving the Bitcoin ETFs. If the agency ever did, it isn’t the first time that they’ve favored Bitcoin. Bitcoin along with Ethereum has been considered not as a security. And this brought regulatory clarity for Bitcoin. Though other cryptocurrencies remain in a limbo whether or not to be considered as a commodity or security, Bitcoin is looking bright for a good reason.
Regulatory changes are happening from different parts of the globe when it comes to dealing with cryptocurrencies. Japan has made the necessary changes designed to protect investors. Japan regulators came up with rules that will prevent hacks from happening. And in addition to this, part of the changes included the removal of cryptocurrencies that provide extra anonymity to its users.
Bitcoin has reached the point that it has surpassed $8,000. If the US SEC decided to approve ETFs, there could potentially be another bullish run. And by then, we could even be seeing Bitcoin closer to its all-time high. Since we only have a few months left in 2018, is it even possible for Bitcoin to go beyond $20,000 as predicted by some experts in the industry?
