'It's Virtually Certain': Bitcoin ETF Will Be Approved, Prominent Analyst Argues

Ric Edelman, a prominent financial markets analyst and founder of Edelman Financial Services, recently said that a bitcoin (BTC) exchange-traded-fund (ETF) will “certainly” be launched.

Edelman, a cum laude graduate of Rowan University and the recipient of an honorary doctorate, told CNBC (on February 11th):

The SEC [US Securities and Exchange Commission] has several legitimate thoughtful concerns that the industry has to overcome but I'm confident they will. Eventually we will see a bitcoin ETF and it's at that stage that I will be much more comfortable recommending that ordinary investors participate.

Edelman added: "It's virtually certain. The only question is when."

On February 5th, 2019, Dr. Drew Hinkes, an adjunct professor at New York University, had revealed that Robert J. Jackson Jr., an SEC commissioner, has said a bitcoin ETF will “eventually” be approved. Although the commissioner’s interview has not yet been published, Hinkes stated (via Twitter) that the pending crypto ETF proposal may satisfy all of the US securities regulator’s requirements.

"Some Serious Players" Have Entered Crypto Sector

Explaining why a bitcoin ETF proposal has taken longer than expected (by some) to be approved, Jackson was quoted as saying:

Getting the stamp of approval from the deepest and most liquid capital markets in the world is hard, and it should be. Once we make it available to everyday mom and pop investors, we are taking risks that Americans can get hurt.

Meanwhile, Edelman believes: 

We've [now] got some serious players [in the crypto space]. Fidelity has made a major announcement in the custody issue. We've got Kingdom Trust and a number of other very serious players on the custody side. I'm confident that in very short order VanEck or Bitwise will satisfy the custody concern to the SEC.

VanEck Director Explains Why Bitcoin ETF Would Help Investors

On February 3rd, 2018, Gabor Gurbacs, digital asset strategist and director at VanEck (a financial services firm that has prepared several bitcoin ETF proposals), argued via Twitter that a bitcoin ETF “serves the public interest” as it provides:

  • “increased liquidity using the ETF ecosystem”,
  • “lower counterparty risk”,
  • “better valuation & execution practices”,
  • “separation of duties: trading, custody, valuation”,
  • “transparent fees”,
  • “established compliance framework”

According to Tom Lydon, the chief editor at ETFTrends.com, there’s currently huge demand for a bitcoin ETF. He remarked (during the same CNBC interview): 

There is pent-up demand. We interview advisors all the time. Seventy-four percent say they've talked to clients about their interests in bitcoin so they need to step up when this happens because that money is going to go elsewhere.

Bitcoin’s Price Fails to Surpass $8,000 as Crypto Market Loses $12 Billion

The cryptocurrency space has recently lost about $12 billion in only 24 hours, at a time in which the flagship cryptocurrency bitcoin failed to remain above the $8,000 mark. The cryptocurrency has more than doubled in value so far this year, but is seemingly struggling to keep rising.

According to CryptoCompare data, one bitcoin is currently trading at $7,600 after falling 3.6% in the last 24-hour period. The cryptocurrency started seeing its price drop shortly after hitting $8,000, and has recovered from a $7,500 low in intraday trading.

Bitcoin's price performance in the last 24-hour period

The cryptocurrency’s price performance so far this year has seen interest in it grow, so much so that it hit a 14-month high in Google search interest this month.  Cameron Winklevoss, a co-founder of the popular Gemini cryptocurrency exchange, recently stated that investing in bitcoin is “not as crazy as sitting on the sidelines when the future of money is literally being built before your eyes.”

Despite the recent price drop, some analysts have revealed they’re bullish as BTC’s mining rewards halving event occurs next year. This, according to some, helps remind users of the cryptocurrency’s scarcity, as block rewards are cut in half.

The recent price drop could potentially be a delayed reaction to Tether, the company behind the popular USDT token, revealing it has invested some of its reserves in BTC and “other assets.” While some claim the firm bought extremely small amounts of crypto with its reserves, New York Supreme Court Judge Joel M. Cohen questioned the paradox, stating:

Tether sounded to me like sort of the calm in the storm of cryptocurrency trading. And so if Tether is backed by bitcoin, how is that consistent? If some of your assets are in a volatile currency that Tether is supposed to somehow modulate, that seems like it’s playing into what they are saying.

Bitcoin’s drop saw most top altcoins follow suit, with some dropping as much as 7% in the last 24-hour period. Litecoin, Bitcoin Cash and Zcash are among the least affected tokens, being down between 4% and 5.2%.

Ethereum’s ether, XRP, and XMR are all down by about 6% in said period, while other cryptocurrencies like Dash, Cardano, and QTUM dropped by as much as 10%. Bitcoin SV, which recently surged by 80% after Craig Wright filed a copyright registration for the Bitcoin whitepaper, is down by little over 1%.