Everybody, here is an excellent read on a subject that will be springing up in headlines everywhere over the next several weeks: BITCOIN ETF’s. We at FintekNews get questions every day on “how can I invest in bitcoin?” and although it’s certainly possible to do so, it just is to ‘complicated’ for most. Enter the ETF. But hold on, these (there are a couple planned) ETF’s are awaiting approval from the SEC with a much anticipated ruling expected on one of them due March 11. Will it happen? There is a lot of expectations and anticipation that the SEC will approve.
Let me throw some “chilly” water on that. It was pointed out by some very smart colleagues that the SEC is currently a “headless horse” in that a new head of the agency has not been approved nor have any of her/his deputies. So, will any of these interim and acting “bosses” actually risk their careers by approving a new product like a bitcoin ETF? Or, will the “can be kicked down the road” (government talk) for a while until the permanent SEC chairperson, and staff, be approved? Something to take into consideration I would think, especially after the brisk run up in bitcoin recently.
An innovative marriage that promises to combine two unique “fintech” concepts—the ETF and the peer-to-peer digital currency bitcoin—looks like it’s finally about to happen.
Indeed, a bitcoin ETF is likely to be approved by the Securities and Exchange Commission as soon as next month. The idea was first proposed to the SEC about three years ago.
Combining ETFs and bitcoin is likely to be consequential. After all, ETFs have been revolutionizing investments for 25 years, and bitcoin, since its 2009 introduction, has shown potential to completely change financial transactions. In an age where asset allocation is its own asset class, a bitcoin ETF could have a place in many portfolios….
A Bitcoin ETF?
This growing bitcoin phenomenon is clearly something people might want to invest in. But can they? Can bitcoin be integrated with something like an exchange-traded fund—the ETF being what I consider to be the most flexible and tradable pooled investment vehicle yet invented.
Before diving into my analysis of the proposed ETFs that are already in the works, I want to be clear that you can purchase bitcoins today.
So, putting bitcoins into an ETF structure is not about making them accessible in a basic sense. It’s about making bitcoins more accessible—that is, investable for any investor within a brokerage account.
With that in mind, let’s look at the three ETFs that are gestating with the SEC….
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