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The likelihood of a Bitcoin ETF during crisis

The likelihood of a Bitcoin ETF during crisis
  • The bitcoin ETF may be the last thing on your mind right now with everything going on in the world. 
  • Even in the crypto space, the most talked about topic is the upcoming bitcoin halving taking place in May.

The bitcoin ETF may be the last thing on your mind right now with everything going on in the world. Even in the crypto space, the most talked about topic is the upcoming Bitcoin halving taking place in May.

The security is an exchange commission in the United States has rejected several bitcoin ETFs of the past few years. In fact, that number is getting close to 10 at the time of writing. The last exchange-traded fund to be rejected was the Wilshire Phoenix proposal back last month as the company expressed extreme disappointment following the decision from the securities commission.

With all these bitcoin ETFs being denied by the government body, you would’ve thought that institutional capital would not be coming into the market. But with a recent announcement from Hong Kong’s first bitcoin index fund highlights that demand for institutions is very much on the rise.

According to the latest analysis from Longhash, the demands for accredited investors only expresses the need for a bitcoin ETF in the market right now. One company, Grayscale have recently released its first-quarter report for 2020 which revealed that the capital coming in from institutional uses has risen to just shy of $390 million. 

The report further went on to say:

“88% of inflows this quarter came from institutional investors, the overwhelming majority of which were hedge funds. The mandate and strategic focus of these funds are broadly mixed and includes Multi-Strat, Global Macro, Arbitrage, Long/Short Equity, Event Driven, and Crypto-focused funds.”

Approval

For the sake of argument, let’s say that a bitcoin ETF was given the green light by the securities commission. What would happen next?

It’s actually funny because it’s been a topic well talked about over the past two years but no one really knows what would happen if an ETF was to be accepted by the SEC. Some of the proposals that have been presented in the past are mainly settled in cash. This is something that will significantly decrease the value of bitcoin.

With everything going on with the coronavirus in the world right now, developments for a bitcoin ETF are more unlikely now than they ever have been. For more news on this, the BTC price and other crypto updates, keep it with CryptoDaily!

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