ETF is a exchange-traded fund and a marketable security that tracks an index, a commodity, bonds, or a combo of assets like an index fund, and it can be traded just like a stock.
A while ago, I updated you that the brothers and co-investors Tyler and Cameron Winklevoss application had been rejected, But, ETF by investment firm VanEck and financial service company SolidX, which has triggered a wide discussion, is a different one.
the reasons stated by the SEC was that they fear high-level market manipulation and lack of liquidity.
So, What Will be the Effects if any BTC/USD ETF Gets Accepted or if the Next One Gets Rejected?
The reality is that no can assure that all ETF’s proposals will not pass.
If any approval of the Bitcoin ETF gets to reality, Bitcoin and many other cryptocurrencies will become a part of many big portfolios of accredited investors and also of personal portfolios.
Newbies could enter this market without putting themselves in a position at which they run a high risk of losing their investment. The new players don’t even have to complete a KYC process for wallets and asset management companies because the exchanges that offer the ETF will look after that part.
Also, important is that even if big players come along to the party, they will only risk losing 0.5% of their portfolios, and that keeps the market volatility.
But, what if the approval comes on ETF by the US SEC, it will be a green light to other Countries, and a good fuel for legalization and lending legitimacy to the cryptocurrency industry, allowing more companies to start dealing and accepting them.
Therefore, it will be inevitable that Bitcoin and Altcoin prices will go up.
In the other hand, as the applications of ETF gets rejected, the situation does not change as much, because right now we do not have BTC ETF.
The only effect is some price drop, right after another application gets rejected, but just as much as the speculation did put the price up, in an artificial way.
Conclusion: Stay Tuned for everyday News, be careful with fake news, but don’t miss any information about that fact because Bitcoin could turn like Gold, and cryptocurrency already showed to have a usage to companies, and could become, highly probable, the near future.
Thank you For Choosing,