Bitcoin Hot News
Investors in bitcoin have had two things to get particularly excited about of late:
the prospect of the first bitcoin exchange-
But whether those gains hold may depend, in part, on whether the ETF is approved.Commodity-
Spencer Bogart, a bitcoin analyst at boutique investment bank Needham & Co., on Tuesday wrote that the launch of a bitcoin ETF would, in the first week alone, lead to an influx of $300 million in new investor capital into the bitcoin ecosystem. Such inflows could expand the cryptocurrency’s size to nearly $15 billion. By comparison, that is about $1 billion more than the market capitalization of Twitter Inc. TWTR, +0.40%
The Securities and Exchange Commission last week designated March 11 as the date by which it would either approve or disapprove the Winklevoss Bitcoin Trust ETF. Tyler and Cameron Winklevoss, who run Winklevoss Capital, first announced plans for one in 2013; the pair also run both WinkDex, a bitcoin price index, and Gemini, a bitcoin custodian and exchange.
A spokesman for the SEC declined to comment, while a spokeswoman for Winklevoss Capital couldn't immediately be reached.
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There is little historical precedent to gauge what impact an ETF launching could have on the price of the underlying asset, as bitcoin would be the first asset to trade in an ETF wrapper before being offered as a mutual fund. Currently, registered investment advisers are unable to directly buy bitcoin for their clients.
Some analysts pointed to the launch of a popular gold ETF, which helped to bolster the price of the underlying commodity, as a possible example of how bitcoin might perform.
However, the SPDR Gold Trust GLD, +0.32% which was launched in 1994, isn’t a perfect analogy, as investors had other avenues—including futures and bullion—to get exposure to gold.
Still, some argue that “the launch of gold-
According to data from the World Gold Council, the top 15 physically backed gold-
Johnson said he was dubious that an ETF would have a long-
Read: Here’s one easy way to get exposure to bitcoin ahead of the Winklevoss ETF
Should the ETF be approved, it would go a long way toward promoting the mainstream acceptance of bitcoin, and signal a detente between the bitcoin community and its regulators. Bogart and Jake Smith, an account manager at bitcoin.com, believe this would also help support the price in the long term by eliminating some of the stigma surrounding cryptocurrencies, which many still view as risky and unstable.
Check out: Bitcoin plunges as Chinese authorities step up scrutiny
Approval would be “a great stride toward bitcoin’s mainstream acceptance, perceived soundness and regulatory approval,” Smith said.
He also noted that a bitcoin ETF would open the doors to retail investors allocating some of their retirement savings to bitcoin.
Despite that, approval of the ETF is far from certain. Bogart said the probability was “very low.”
“To be clear, we don’t see any specific reason to disapprove the Winklevoss Bitcoin ETF but, instead, think that the confluence of fear, uncertainty and doubt coupled with basic incentives at the SEC will make it very difficult to get approval,” Bogart wrote to clients.
In its brief history, regulators and the digital-
“Through smart and careful regulation, New York State continues to flourish as a
virtual currency leader in the global marketplace,” said a representative for NYDFS.
“The Department of Financial Services will continue to encourage the development
Late last year, the IRS issued a summons to coinbase, a popular cryptocurrency exchange, demanding it turn over client records, provoking outrage and speculation about a protracted legal battle.