Canaccord Genuity believes the U.S. Securities and Exchange Commission (SEC) will likely approve a Bitcoin ETF, but this will probably only happen next year. According to Canada’s largest non-bank-owned investment manager, the SEC’s recent decision to reject the Winklevoss Bitcoin Trust was a serious blow to the cryptoverse.
“…any optimism has only been struck down with the rejection of the Winklevoss Bitcoin Trust and the SEC’s decision to delay making a decision on five bitcoin-related ETFs proposed by Direxion Investments,” Canaccord stated in its quarterly report on blockchain and digital assets, obtained by mediahouse Coin Desk.
According to the investment firm, the rejection has reduced the possibility of seeing a Bitcoin ETF in the market this year.
Though the SEC’s rejection of the proposal for a Bitcoin ETF put a damper on hopes of many crypto enthusiasts, many believe that the regulator will probably extend the deadline for a decision – due this month – on the VanEck SolidX Bitcoin Trust.
0/ It kills me to tweet about SEC rulemaking procedures, but given the confusion on #crypto twitter today, it feels necessary.
TL;DR — the SEC can, and probably will, delay its decision on the VanEck/SolidX commodity-backed #bitcoin ETF until ~February 21, 2019.
— Jake Chervinsky (@jchervinsky) July 24, 2018
VanEck SolidX Bitcoin Trust – most likely to get SEC nod
However, Canaccord believes an approval is in the offing. “…although the VanEck SolidX Bitcoin Trust, seen by many as the most formidable candidate for a potential approval, is due for a potential decision as early as this month, it is largely believed that the SEC will extend its deadline, in which case a decision may not be made until March 2019,” the report said.
The report highlighted the fact that Bitcoin-based securities have been available for trading on regulated exchanges for a while now.
It also noted that Canada is not far behind on working on its own Bitcoin ETF. Evolve Funds Group, which provides ETFs to Canadian investors, had filed a preliminary prospectus last year with the country’s Canadian securities regulators for Evolve Bitcoin ETF.
Crypto community unfazed by bear market
Another interesting point that Canaccord made in its report is the fact that many in the cryptocurrency community aren’t too concerned about the significant drop in Bitcoin’s prices.
The report stated, “…Bitcoin believers have rather welcomed the latest bear market as a time to continue to build and make bitcoin a more viable store-of-value or payments mechanism.”
To sum up, key developments and overall optimism in the space remain strong despite the bearish trend seen in the cryptocurrency market, according to the report.
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