[2018-10-24]Reason Why Bitcoin ETFs will Change Crypto Industry

[Vladdirescu87]

Notwithstanding that the most recent round of Bitcoin (BTC) ETF denials by the US SEC are absolutely an obstruction, once launched, crypto ETFs will essentially change the game for digital currency.

To properly know how the rollout of a BTC ETF could affect the Cryptos price, it’s useful to do a comparison to gold-linked ETFs. In the year 2003, the price of gold powerfully soared following the introduction of the first ETF.

Read the details in the article of Coinidol dot com, the world blockchain news outlet: https://coinidol.com/reason-why-bitcoin-etfs-will-change-crypto-industry/

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[1Referee]

It makes more sense to have these articles pop up after an approval rather than before, especially with how it's not looking like we're going to get an ETF approval at all in the coming years. On top of that, the drama around Bitfinex and Tether only further lowers the odds of an approval.

"By some estimates, there is $10 billion of institutional money waiting on the sidelines to invest in digital currency today," Co-Founder and CEO at Coinbase Brian Armstrong said in a blog post last year.

I'm certain that there isn't much left of that 'waiting' $10 billion institutional money at current stage. Coinbase is the perfect example of that with how they pulled back their institutional focused index fund due to the lack of interest, lol. Coinbase should know that launching these products during a bear market isn't going to bring you anything of worthwhile nature.

[magneto]

Obviously, such a high profile approval will change a lot of the industry.

But I think that the benefits are all going to be more institutionally focused than on a bitcoin's user's level. An average bitcoin user is definitely unlikely to be affected by ETFs, if they are ever approved.

Sure, there may be a short term buzz in the market due to a potential approval, but that would be pretty much it in terms of impacts in my opinion. In the long run, investing in bitcoin itself is a much wiser thing to do than investing in a fund.

Also, I fail to see how ETFs will change the intrinsic security of bitcoin and other cryptos for the better like the article claims? Perhaps it makes the process of safekeeping easier for institutional investors, but that's pretty much it.

[squatter]

To properly know how the rollout of a BTC ETF could affect the Cryptos price, it’s useful to do a comparison to gold-linked ETFs. In the year 2003, the price of gold powerfully soared following the introduction of the first ETF.

Correlation or causation? I would bet on the former. When the first US copper ETF launched in 2012, the price declined for the next 3-4 years straight.

Also, it took a 2-3 years of trying before JPMorgan got approval to launch that copper ETF. We should probably expect a Bitcoin ETF to take considerably longer than that. Bitcoin is a brand new asset class; copper is a basic metal. Yet it still took years for the SEC to approve a copper ETF.

[BitHodler]

Coinbase is the perfect example of that with how they pulled back their institutional focused index fund due to the lack of interest, lol.

That. They took care of the custody aspect, were entirely legal, and granted exposure to both Bitcoin and the altcoin market. It's a solid combination on paper, but not enough to draw attention from institutions.

2019: Institutions are about to enter the market.
2020: JPMorgan plans to create trading desk.
2021: Bullish news for Bitcoin, Vaneck ETF might be approved soon.

I can remember that this nonsense started back in 2015 and maybe even before that. By the time institutions finally announce that they are in, you can be sure they have been in for years already.

[rodskee]

Yeah it's possible if etf aprove by the us sec government.
Possible to bitcoin become regulated and their price control by security and exchange commission