During an interview with CNBC Crypto Trader, Mati Greenspan, Senior Analyst at eToro, stated that it is unlikely to get a Bitcoin [BTC] ETF by the end of 2018. However, he is optimistic about an approval of Bitcoin [BTC] ETF in the first quarter of 2019.
Mati said that the reason behind the statement is based on a conversation he had with an attorney on Twitter. According to the attorney, the SEC has several periods that they can actually delay. There are three different periods that they can put on a specific delay. The attorney also states that the final decision would probably be on 4th August 2018.
The Senior Analyst of eToro said:
“They are [SEC] not in the rush to approve this one [VanEck], so most likely they are going to take their time. Which would mean that on August 10th will be a simple delay of the judgment.”
Furthermore, Mati speaks about covering all the points on the checklist for getting approved by the SEC for the next ETF. He said that by Q1 of 2019, the market would be much more mature. There are a lot of over the counter desks coming online, specifically the VanEck products, which are targeted at the institutional investors. The minimum contract size of the VanEck ETF is 25 BTC which is about $200,000 per contract.
Mati considers the fact that VanEck ETF is targeting the institutional investors could give them a better chance with the SEC. The fact that the ETFs are 100% insured is more comforting for the financial regulators, states the analyst. He said that since the Winklevoss ETF was rejected as it was targeted at retail investors, who the SEC considers their specific job to protect.
On the other hand, the SEC considers institutional investors as a “big boys” as they are the big players. Greenspan stated that the SEC believes that they can make their own decision as they have the money and assets under management.
This is the reason the SEC wouldn’t be obliged to step in and protect them. Mati also said that the Bitcoin ETF could be a good for the market as it would lead to fresh money pumping into the market.
He furthermore said:
“New liquidity into the market is a very good thing and very healthy for the ecosystem. I don’t think that it’s the most important thing in the world but if the ETF is approved, what happens to Bitcoin price, most likely it’ll go up … There shouldn’t be any negative factors from the approval of an ETF, it just means that there is new money coming in. It wouldn’t hurt the market in any way, shape or form.”
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