bitcoin approval

Earlier this week, U.S. based investment and financial services company Goldman Sachs, backed off from any plans of setting up a cryptocurrency trading desk.  Consequently, the price of Bitcoin and other cryptocurrencies plunged because of waning interest in crypto from Wall Street and other real-world institutions.

However, the price of Bitcoin could once again be lifted. According to sources, Coinbase, the cryptocurrency exchange and wallet provider, is in talks with BlackRock, the world’s biggest asset manager, to come up with a Bitcoin exchange-traded fund (ETF).

The U.S. Securities and Exchange Commission (SEC) has previously rejected nine other proposals for developing Bitcoin ETFs. These include investment firms such as ProShares, Direxion, and GraniteShares as well as an ETF proposal by the Winklevoss twins.

That being said, cryptocurrency experts are looking at 2019 as a favorable time for a Bitcoin ETF to be approved by the SEC.  An ETF filed by VanEck, an investment firm, and SolidX, a blockchain technology company, is currently awaiting approval from the SEC. The approval date has been pushed back once before but is expected to be sometime at the end of September.

Intercontinental Exchange (ICE), the company behind the New York Stock Exchange, is also planning to introduce a Bitcoin ETF, in partnership with Starbucks, Microsoft and Boston Consulting Group. This ETF will be launched in November through its cryptocurrency platform Bakkt.

Even if the proposal for the VanEck/SolidX ETF is rejected, it will lead to continued interest in and support for Bitcoin price.

bitcoin price

However, the approval of a Bitcoin ETF will cause renewed endorsement of crypto among investors many of whom are still wary of putting money into the unsteady crypto markets. Things are looking up for Bitcoin ETFs since the Senate has approved the appointment of Elad Roisman as the new SEC commissioner.

Roisman spoke at a Senate Banking Committee in July, stating that blockchain offerings and ICOs require attention. He went on to say that SEC should make a fair and transparent approach to these challenges and work to enforce laws and regulations in the crypto market.

Even the present SEC commissioner, Hester Pierce, has voiced her support for ETFs.  Be that as it may, not everyone is in favor of Bitcoin ETFs being approved by the SEC.  An ETF is not really necessary for any cryptocurrency as seen by the spiral growth in the market cap of crypto so far. This point of view is also supported by other industry experts such as Nick Szabo.

According to Andreas Antonopoulos, the prominent Bitcoin advocate,

“ETFs fundamentally violates the underlying principle of peer-to-peer money, where each user is not operating through a custodian but has direct control of their money because they have direct control of their keys”.

Cryptocurrency professionals are much more eager on the implementation of Bitcoin adoption which would boost the price of Bitcoin and other altcoins much more.