ETFs

US Securities and Exchange Commission might approve a Bitcoin ETF by early November

TL;DR Breakdown

  • According to Mike McGlone of Bloomberg Intelligence, a Bitcoin ETF may be authorized by the U.S soon.
  • Investors are flocking to Canada’s institutional crypto offerings.
  • Bitcoin ETF may spur the next sustained move higher for BTC prices

According to Mike McGlone of Bloomberg Intelligence, a Bitcoin ETF may be authorized by U.S. authorities by October. According to senior market strategist Mike McGlone, the approval process is likely to be completed by July 2020

It’s only a matter of time, according to Mike McGlone, who is also the founder, and chairman at Macro Trend Strategy. He thinks the U.S. Securities and Exchange Commission (SEC) will grant approval for the United States’ first Bitcoin ETF sooner or later.

Canada’s increased competition against the U.S on the ETF front

In an interview with Stansberry Investor host Daniela Cambone on Sept. 21, McGlone claimed that after allowing Bitcoin ETFs from 3iQ and Coinshares in April, Canada has extended a competitive advantage over the United States.

He stressed that investors are flocking to Canada’s institutional crypto offerings, including Ark Invest. He thinks that US lawmakers will not want to miss out for much longer. 

“I think there’s a very high probability that Bitcoin will be approved this year, by October 2020,” McGlone said.

“The last time 3iQ filed for Bitcoin was January 4 of this year. The U.S. is now once again lagging behind Canada in crypto space.”

He explains that investors are no longer interested in Bitcoin futures, but in physically backed ETFs. In addition, he further added that Coinshares’ 12b-1 fee structure is superior to alternatives such as Grayscale.

“The result of all this is that when it comes to U.S.-based crypto players they have been able to do a lot of business and make a lot of money right here in the U.S.,” McGlone said, “But they’ve been doing it through Canadian ETFs.”

“There is no doubt that there’s a lot of excitement around crypto, and I think the reason Canada has such great exposure right now, relative to their size as an economy, is because of the existence of a major exchange in their markets.”

ETFs approval will directly impact the price of BTC positively

He also added that a Bitcoin ETF may spur the next sustained move higher for BTC prices, which would benefit from the greater institutional investment.

When asked how long it could take for a Bitcoin ETF to be approved in the United States, McGlone projected that it may happen “possibly by the end of October.” He continued that it’s more likely to be a futures-backed product first, noting that it will create a “legitimization window” for an enormous amount of money.

The dollar’s surge against commodity currencies, however, has been due to the Federal Reserve’s message last week. He also restated a recent report from Bloomberg Intelligence that predicted Bitcoin prices reaching $100,000 this year as a result of an ETF approval.

In previous bull markets in 2013 and 2017, the latter quarters witnessed huge price increases, according to Crypto YouTuber Lark Davis, who also follows McGlone’s price targets.

Despite the fact that the number of applications from prospective providers has continued to rise, the SEC has yet to approve a crypto ETF.

This month, Fidelity Investments, a multinational financial services firm, submitted an ETP to the SEC in hopes of getting it approved, claiming that bitcoin markets have already developed maturity under the agency’s own criteria.

ETFs would allow retail investors to buy cryptocurrencies more easily by creating funds that hold the assets and allowing them to be traded like stocks.

The SEC, however, has delayed accepting such applications on several occasions. Some of its concerns focus on custody solutions and fraud prevention. Yet before it can make any decisions, it has further requested public comments about ETPs.

According to McGlone, the SEC has received almost 1,000 comments from members of the public, which is a sign that retail investors are getting more involved in cryptocurrency markets. The agency itself also issued a comment on Aug. 22 stating how it’s working to make sure ETPs comply with Federal securities law.

In July, the SEC rejected a rule change for the Winklevosses’ Gemini Trust Co. that would’ve allowed it to list and trade shares of SolidX and VanEck’s proposed ETF.

It also rejected two other similar submissions in March, citing concerns about market manipulation and surveillance as reasons for doing so.

Last month, however, agency commissioner Hester Peirce, who was appointed by President Donald Trump in 2017, wrote a public statement that indicated her disagreement with the SEC’s decision.

This post was last modified on September 22, 2021 12:14 pm

Beatrice Mastropietro

Beatrice is an experienced freelance Crypto and Financial market writer with several years of experience writing for a variety of businesses, platforms, and media sources. She specializes in developing original content to fit her clients' needs with a dedication to quality and integrity.

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