Categories: Bitcoin Business

The SEC Could Approve the First Bitcoin ETF in 2019

Click here to view original web page at

For a long time now, mutual funds have dominated the cryptocurrency trading market by offering investors professional management, daily liquidity, broad diversification, and relatively low cost. Exchange Traded Funds (ETFs) enhance these benefits even further, and this is one of the main reasons why they are on the rise now more than ever.

Most intellectual financial experts agree that the pros of ETFs certainly overshadow the cons by a huge margin.

What are ETFs Exactly?

In simple terms, an ETF is a basket of securities you can trade through a broker on a stock exchange. ETFs are offered for investors of stocks, bonds, and commodities and have both the properties of mutual funds and common stock. Bitcoin ETFs were created to offer investors a diversified portfolio of their assets at a relatively low cost and with better transparency concerning where to trade Bitcoin.


Here are some of the benefits of ETFs compared to mutual funds.

  • Tax-efficiency: Investors have more control during the payment of capital gains tax;
  • Higher trading control: ETFs trade over an exchange across the day compared to mutual funds which are only traded once a day at the closing NAV price. This gives traders a better selling/buying control and the power to set stop-loss limits on their trades;
  • Zero Investment Minimums: You don’t need a minimum to purchase shares on ETFs- even one share will set the ball rolling for you;
  • Lower fees: ETFs have zero sales load except for brokerage commissions.

Past Attempts to Approve Bitcoin ETF

The U.S. Securities and Exchange Commission (SEC) has been rejecting bitcoin ETF approvals since 2014 for different reasons.

Direxion and GraniteShares have had five and two ETFs rejected respectively based on the grounds that the organizations putting forth the proposals don’t have the capacities to implement the products.

Winklevoss Twins, founders of the Gemini Exchange, have also made two attempts at ETF approvals but have hit a dead end too. Even worse, they have actually been barred by SEC from ever trying again.

The most recent proposal is one by VanEck which happened late last year but this too didn’t manage to see the light of the day.

Light at the End of the Tunnel

Things are certainly looking up now on the wake of SEC’s big announcement that it is indeed making great strides as far as ETF proposal is concerned. On February 15th, the Commission published a proposal filed by Bitwise Asset Management and NYSE Arca. The decision on whether to approve, refute, or extend the period of the proposal is yet to be made by SEC which it intends to do in 45 days from the day the proposal was published on Fed Register.

Expectedly, the approval process is quite complex. It has to go through a rigorous exercise and face roadblocks before it is unveiled as a guide for bitcoin trading. However, unlike past bitcoin ETF proposals, this one is highly valuable because it focuses on physically settled Bitcoin futures contracts.

John Hyland, Bitwise’s global head of ETFs, is quite confident that this proposal will see the green light. From a statement he recently made concerning the proposal, he said that although there’s no assurance that the proposal will make it through, he is quite optimistic that 2019 is that year when bitcoin ETFs will be launched finally.

Bill Adams has been into currency trading for over 5 years. After taking a short course about Forex and Cryptocurrency, he decided to put his knowledge to good use as a writer and trader at TenkoFX. His Educational background in Business Administration and Economics has given him a broad base from which to approach Forex and Cryptocurrency topics.

You May Also Like

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by

Recent Posts

Bitcoin {BTC} founder Satoshi Nakamoto will allegedly disclose his identity; Charlie Lee rejoices with regards to Bakkt launch

Satoshi Nakamoto was the man behind Bitcoin. His personal identity has remained secret for over a decade. Some believe that… Read More

2 hours ago

Crypto Community Reacts to Bakkt But Not all Are Bullish

The news that regulatory approval has finally been granted to Bakkt has generally been perceived as bullish for the industry.… Read More

2 hours ago

Bitcoin is not behaving like a safe-haven asset, says Ikigai founder Travis Kling

Kling doubts whether Bitcoin is ready to assume safe-haven responsibilities like its peers such as gold. Kling did note Bitcoin’s… Read More

2 hours ago

Istanbul Hard Fork: Ethereum Devs Agree to Make Six Different Code Changes

The developers of Ethereum (ETH), the world’s largest platform for building decentralized applications (dApps), have finalized six different codebase modifications… Read More

2 hours ago

Blockchain Voting System in Moscow Municipal Elections Vulnerable to Hacking: Research Report

A recent research report by a French cryptographer demonstrates that a blockchain voting framework utilized in Moscow’s municipal elections is… Read More

2 hours ago

What Would It Take To Build A World Without Globalists?

Authored by Brandon Smith via, You can bet that whenever you find people analyzing the root of a problem… Read More

8 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More