Patrick Iturra Report, EIG Asset Manager
The ProShares Bitcoin Strategy ETF is scheduled to join the New York Stock Exchange today. However, there is one catch to this, and the ETF will have to gain approval from the SEC (Securities and Exchange Commission).
The ProShares Bitcoin Strategy ETF will join the New York Stock Exchange today. It is good news for every cryptocurrency enthusiast in the United States. However, there is one catch to this, and the ETF will have to gain approval from the SEC (Securities and Exchange Commission). But, crypto enthusiasts are all excited about this & considering this as a big step in the direction of a bright future for cryptocurrencies.
I am a strategic investment advisor with experience of more than 24 years. I take it as a responsibility to share my thoughts regarding investment & wealth generation. In the following section, I will share my knowledge about the new Bitcoin ETF. We’ll see whether it is the right step in the right direction or not?
Bitcoin ETFs Future: The right step or will it be a disappointment?
One thing that I want to make clear here is that the Bitcoin ETF will be based on the Bitcoin futures trading over the Chicago Mercantile Exchange. Many crypto enthusiasts were disappointed to hear this when they heard that the ETF would not work based on bitcoin’s value. As a result, many crypto investors are saying that the futures ETF is incapable of tracking the price of crypto. Therefore, the SEC should interfere and proceed ahead for the pure bitcoin-based ETF.
Grayscale ( a popular digital asset manager) is ready to convert the GreyScale Bitcoin trust to a Bitcoin ETF. The main argument is that the future and options deal in the spot market, where the financial instruments are exchanged for immediate delivery. Therefore, the SEC should be comfortable with trading in Bitcoin’s stock market value. But, this has to hold because the ETF is pending approval from the SEC.
Optimism from the Investors
Regardless of all the doubts, many crypto enthusiasts are taking this optimism, quoting this as the first step towards a bright future. The main reason behind this is that they are optimistic about the SEC approving the Bitcoin Future, a regulated market.
The future is a regulated market, and this is the reason why the SEC might approve of the Bitcoin Futures trading instead of a pure-play bitcoin ETF. Even though SEC Gary Gensler has to be supportive of crypto, but he cannot impose regulatory authorities over the decentralized currency. He wants to strike a balance between being innovative & regulatory control. He wants to establish absolute control to prevent all fraud and criminal activities.
Unfortunately, there is no regulatory framework ready as of now. I think the government has to step in and develop a detailed regulatory structure for crypto trading. Even though that might happen in the future, the chances of it happening right now are low.
There is no doubt that the SEC would be under tremendous pressure right now. A good solution for this would be to approve the Bitcoin Future ETF. Once that happens, it will bring in more people to the bitcoin ecosystem. It will come with its benefits. For example, the investors would not have to worry about remembering passwords or losing bitcoins to hackers.
Bitcoin ETF: One thing that might worry all!
The biggest reason why the Bitcoin ETF is not approved yet is the probability of market manipulation. It is being feared that the bitcoin ETF can be manipulated. Also, the concept that it is a decentralized currency acts as icing on the cake. I mentioned before that the bitcoin ETF would not depend on the physical value of Bitcoin. But, still, there are chances for manipulators to find some way to get in unfair means to disrupt market operations.
Bitcoin ETF: My Thoughts
As an investment advisor, I think that the SEC should approve the Bitcoin ETF. Even though there are no chances that the SEC will approve the pure bitcoin-backed ETF, as I explained before, they want more regulatory control over the spot market and won’t agree until it is regulated. Also, the commission will consider the possibility of manipulations.
For now, I think that the ProShares ETF will start trading on Tuesday. Soon others will also follow up. I would say that this is a big step for all crypto enthusiasts all over the world.
What should the investors do?
Well, I would quote two words: Strategic investment. Even so, the bitcoin ETF is entirely new to the market. Investors should calculate risks correctly & invest wisely. This might be sounding like a cliche. But, let me quote that “strategic investment is the key to build wealth in the long term.”
Again, this is a big step for all crypto investors! An avid investor should never back hold back to invest in the ETF. But, make sure you plan your investments. In case you need any help, you can contact me here!
I am always here to help you!
EIG Asset Manager, I monitor my investors’ property performance and maximize their real estate income. My job involves leading the construction, operations, and leasing teams of your real estate investment company to ensure optimal value for each asset. FALLOW