It is possible that regulators may soon approve the first U.S. exchange-traded fund for bitcoin.
Investors who have watched the cryptocurrency’s value soar since 2017 have understandably grown interested in gaining exposure to bitcoin via an ETF, rather than holding the digital currency directly. Yet so far, U.S. financial regulators have barred any such fund, even as a bitcoin ETF launched on a Canadian exchange. But this has not stopped companies from doing this directly (Tesla).
The new head of the Securities and Exchange Comm. is a bitcoin supporter. Gary Gensler, newly approved as SEC chief, previously taught college courses at MIT on cryptocurrencies and the blockchain tech they use, and seems like a fan of them.
Several financial firms are applying to launch a bitcoin ETF: Fidelity, Wisdom Tree, Van Eck and NYDIG. If any of them get the OK, it would open the market to small retail investors who aren’t tech-savvy but think there is potential in bitcoin.
My concerns are based upon the huge fluctuations that seem to have no explanation as to why they are happening. But I know some who were betting quite a bet on the Afghan Afghani after the conflict there; believing the US propping up the currency would have huge rewards.