Bitcoin ETF: approval closer than ever
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Bitcoin ETF: approval closer than ever

By Marco Cavicchioli - 8 Oct 2019

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“We’re closer than we’ve ever been before to getting a bitcoin ETF approved.” 

This is what Bitwise CEO and former Inside ETF CEO Matt Hougan told CNBC during the ETF Edge program.

Hougan says the bitcoin market has changed dramatically in the last two years, with dozens of regulated traders, custodians and insurers coming into the picture. 

In addition, the trading volumes of bitcoin futures are finally significant, allowing the market to be more efficient. 

The SEC’s approval of Bitwise Investments’ own Bitcoin ETF, called Bitwise Bitcoin ETF Trust, expires on October 13th, so Hougan’s statements are worth considering since he is one of the most informed people on these issues. 

According to Hougan, the volatility of bitcoin, which persists over the months and most likely will not be significantly reduced, should not prevent from being optimistic about the prospects for this ETF being approved by the SEC.

He added: 

“Sometime before Monday, the SEC has to give its decision: yes or no. They have no more ways to postpone it at this point. We will hear clearly between now and Monday what they think, and then, depending on what we hear, we’ll go forward from there. But it should be a very exciting week”.

According to Bitwise’s CEO, ETFs would allow ordinary investors to easily and securely invest in bitcoin, which could promote the development of this market. 

He said: 

“What the bitcoin ETF would allow everyday investors to do is have safe, simple, secure access to the wealth generation taking place in bitcoin and crypto. It would let financial advisors give it to their clients easily instead of them going rogue. It’s just trying to solve that problem of simple, secure access to what is emerging as a very important technology and a very important asset class in the market”.

To be honest, it doesn’t seem at all certain that the SEC will approve Bitwise’s ETF on bitcoin, but Hougan’s description of this market seems correct. However, there is one issue that the CEO of Bitwise did not address, and that the SEC might still consider relevant: the possible market manipulations. 

 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 11 thousand subscribers.

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