Bitcoin’s price has plummeted recently and the digital coin is trading at around $6,000. Investors are eagerly awaiting to see if there will be a Bitcoin ETF approved by the SEC this Thursday, 23rd of August, 2018.
After some initial delay, the SEC will “make or break” the Bitcoin market for sure. The most awaited ETF decision is on the ProShares Bitcoin ETF, as well as the ProShares Short Bitcoin ETF. The final decision is to be made by the end of this week, around August, 23rd.
The filings of ProShares are related to Bitcoin ETFs based on bitcoin futures contracts, which essentially means that the entire value of the ETFs will be based on the futures contracts that are currently traded on CBOE and CME. Those launched at the end of last year.
The logic behind the time of proposal comes from the fact that the entire Bitcoin market, especially the futures contracts were new to the world. Once there is more acceptance and trading, as well as understanding of the bitcoin-related products, then there is place for a Bitcoin ETF and Short Bitcoin ETF.
The SEC has so far either rejected or delayed the Bitcoin ETFs proposals submitted by a handful of investors. Also, if there is a launch of a Bitcoin ETF, this will solidify the long-term prospects of the cryptocurrency, as an ETF speaks for a long-term, hold strategy, a “buy” position, essentially.