The cryptocurrency crisis for a Bitcoin exchange-traded fund could soon be over, especially after Coinbase, now the largest publicly traded cryptocurrency exchange, rocked out its direct listing this week in what is considered a potential game-changer for cryptocurrencies ETFs.
WisdomTree and VanEck are the only two firms in the lead for approval of their Bitcoin ETFs, both have filed with the Securities and Exchange Commission via 19 b-4 s, which ticks the clock for the SEC.
While you can buy Bitcoin and other cryptos via platforms such as Coinbase, Gemini, founded by the Winklevoss twins and Robinhood, there are no US ETFs available at the moment.
According to experts, a bitcoin ETF will give Main Street investors broader access and greater transparency to Bitcoin, just as the GLD-funded state fund for gold does.
A lot of people want to get access to bitcoin in a broader portfolio, and there are no ETFs for this today, explained Neil Cavuto, CEO of the Blockchain Association during an interview with FOX Business.
The VanEck Bitcoin Trust will reflect the performance of the MVIS CryptoCompare Bitcoin Benchmark Rate, and shareholders who decide to buy or sell shares of the Trust will place their trade orders through their brokers and may incur customary brokerage commissions and charges according to the Fund's prospectus.
As for WisdomTree's Bitcoin Trust, its product is similar, noting the investment objective is to gain exposure to the price of bitcoin, less expenses and liabilities of the Trust's operations. In order to meet its investment objective, the Trust will value bitcoin and hold shares daily based on the CF Bitcoin US settlement price, which is an independently calculated value based on an aggregation of completed trade flow of major bitcoin spot exchanges as noted in its prospectus.
Both firms declined to comment, citing the quiet period of regulation practices. The timing of the decision by the SEC remains unclear: officials at the commission did not immediately respond to FOX Business' request for comment.
In another bullish tilt for the crypto market, Congress approved Gary Gensler this week to lead the SEC. The former Chairman of the Commodity Futures Trading Commission is seen as having a better understanding of the crypto world compared to his predecessors at SEC.
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During his recent tenure as Professor at MIT, he taught a class called Blockchain and Money. This course is for students who want to explore the potential use of blockchain technology-by entrepreneurs and incumbents-to change the world of money and finance, described by the Sloan School of Management at MIT.
We are hopeful that he will see the approval of a bitcoin ETF during his term, we are also watching closely to see what he wants to do on the regulatory front, added Smith.
During his confirmation hearing, Gensler hinted at both sides of the coin.
Bitcoin and other cryptocurrencies have raised new thinking to payments and financial inclusion, but they have also raised new issues of investor protection that we still need to be attentive to, Gensler explained, adding that he would work with his fellow commissioners to promote innovation but also ensure investor protection.
The timing of his swearing is unclear, but emails to Gensler from FOX Business were not returned.