In terms of the current climate in the crypto market, though things look bearish, there is still hope for a lot of experts considering the possibility of institutional investors entering the market. For many, institutional investors could provide not only fresh capital into the market, it can also signify the legitimacy of the crypto industry. And that is a big deal today.
In fact, regulatory changes may have hurt the market in 2018, but it is a necessity considering the Wild West nature of the industry prior. It was subject to different strategies that can manipulate the market. In fact, even today, the US Securities and Exchange Commission cited price manipulation as its reason why it rejected a number of Bitcoin ETF applications.
Reggie Browne who is the so-called “godfather of ETFs” think that a Bitcoin exchange-traded fund is going to come true in “no time”. Browne works as a senior managing director and head of ETF-trading at Cantor Fitzgerald which is a financial services company. Cantor Fitzgerald was established in 1945. It focused mainly on institutional equity, fixed income sales, and trading as well. It has handled 5,000 institutional clients including companies that are found in investment banking, prime brokerage, and commercial real estate.
While speaking at Georgetown University’s Financial Markets Quality Conference in Washington DC, Browne believes that a Bitcoin ETF will be approved once there is a strong regulatory framework. He mentioned that “it’s very difficult for the (Securities and Exchange Commission) to wrap their heads around a positive approval because there’s no data yet…the markets just aren’t here”.
There have been various attempts to have a Bitcoin ETF. In fact, Winklevoss twins have attempted twice to file their application only to fail on both occasions. Gemini even became a client for NASDAQ for their market monitoring solutions that aim to solve price manipulation within the niche.
So far, there have been interesting developments in terms of a possible Bitcoin ETF. SEC commissioner Hester Pierce even made her letter of dissent after Bitcoin ETF applications were rejected because of possible price manipulation.
And so far, some experts agree with Browne’s opinion regarding the inevitability of a Bitcoin ETF. Ran Neuner, who is a known crypto analyst, mentioned in October that the price of Bitcoin is “about to explode”. He tweeted that “I just bought Bitcoin for my parents”.
Aside from a Bitcoin ETF, the US Commodity and Futures Trading Commission announced that Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) were eligible of having their own Bitcoin futures. The launch of the Bitcoin futures is going to happen on December 11 while CME will have their Bitcoin futures on December 17.
Regulatory clarity is slowly developing within the niche. And because of this, though the participation of institutional investors is quite slower than expected, these developments might be enough to see a Bitcoin ETF soon. Is it possible to have another bull run in the coming months because of the role that institutional investors play? Will there be a Bitcoin ETF soon?
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