We Bring You The Reasons Why There Is Still Be Hope For The VanEck Bitcoin ETF
All that you wanted to know about VanEck ETF. Read on this interesting write-up to gain more knowledge.
What Is VanEck ETF?
The US Securities and Exchange Commission midway through the summer of 2019 had given cryptocurrency enthusiasts a reason to despair where after months of speculation and anticipation the regulator revealed that it is set to delay the announcement of the decision about the potential approval of the VanEck SolidX Bitcoin ETF for close to two months. Even though the decision to move the announcement did not necessarily signal that the exchange-traded fund was doomed to failure before it could even launch as many in the Bitcoin community reacted as if that had been the case and in just a few days, the entire cryptocurrency market lost more than15% which was according to Bitcoin Exchange Guide.
Hereby it is known that the VanEck SolidX ETF which was not the first Bitcoin linked fund of its kind as it comes across the approval desk of the SEC where many in the community saw it as potentially the strongest candidate and with the updated deadline for the decision announcement approaching, the investors are thereby likely wondering what if anything will happen with this ETF application. The following are some of the reasons that there may still be hope for the successful approval of the Bitcoin ETF.
Why Do The CBOE Sources Remain Confident ?
Subsequently, according to the Bitcoin Exchange Guide report, the sources at the Chicago Board and Options Exchange has remained confident that the ETF will still be approved as one of the sources goes so far as to predict with 99% confidence that the SEC will ultimately approve the ETF even if it comes with a bunch of pushback from the approval committee.
Therefore the team responsible for the development of the ETF was even then anticipating a delay in the approval process as a source from VanEck had suggested that the firm expected this delay as they won’t say that they expected an approval but there have been specific speculations which they agree with and have incorporated into their timeline.
Hereafter those in the know enjoy such confidence wherein the ultimate prospects for the ETF is should those regular investors follow their lead? It is better to see it as evidence for the eventual approval of either VanEck project as well as a similar cryptocurrency ETF, whereas on the other hand perhaps the developers of an ETF are not the most impartial analysts of matters like these.
What Are Those Unique Features ?
It is that according to Bloomberg, that the VanEck ETF comes with some features that earlier proposals did not as this could work toward a greater likelihood of approval and the fact is that the VanEck ETF is slated to have a share price of roughly $ 200,000 while considered incredibly high compared to most ETFs, meaning that only institutional and accredited investors will have access. It is here that beyond that the ETF is sure to ensure bitcoins up to $ 25million where both of these could play a role convincing the SEC that the VanEck ETF is responsible to avoid the manipulation and many other issues.
Heres Why The Bitcoin Futures Point To The Future
Here comes another argument which is in favor of the Bitcoin ETF which is that Bitcoin futures have seen tremendous increases in interest levels among investors. It is here that with the SEC concerned about arbitrage between Bitcoin and a linked ETF the futures could help to eliminate or reduce any concerns. So the more liquid the futures market, the more likely it is that the Bitcoin ETF could be physically backed. So, on the other hand, the trading volume for Bitcoin futures remains small.
It is here that regardless of what happens it is the SEC that finalizes its decision about the VanEck ETF which is a safe bet that the cryptocurrency market will react wildly. It is therefore for HODLers and other enthusiasts that approval could mean a quick boost to values of cryptocurrencies across the board. Thereby a final rejection though could surely bring about a slump even more significant than the previous one.
The Concluding Thoughts
Here is why the crypto world is keenly observing these ETFs and by now VanEck has attained the highest position among them. The way this ETFs trade is quite well determined by their popularity. Therefore there is much more than what is said about these ETFs. Let’s get to know more about VanEck ETF.