As widely expected, the United States Securities Exchange Commission and the Commodity Futures Trading Commission have decided to delay the review and decision of pending applications for cryptocurrency trading products. There was some hope that both financial regulators would have revisited the pending applications after New Year’s Day; as the situation stands, however, prospective investors and traders would have to wait until at least February to get fresh news on Bitcoin exchange-traded funds and futures contracts that are actually offered in digital currency tokens.
Will the SEC Approve Bitcoin ETF?
The current status of a Bitcoin ETF approval is unknown; there are high hopes and some positive signs that the SEC will grant approval, but some cryptocurrency investors are not particularly excited over this security. A few asset managers who advise clients holding cryptocurrency believe that holding actual tokens during the current bear market is a better strategy than getting into ETFs. The investment banking firms and cryptocurrency exchanges behind the ETF applications will need to figure out the right marketing angles to entice investors; there is a high chance that these trading securities will not be easily understood in the beginning, but Wall Street brokers will certainly find a way to sell them to institutional investors.
As for the Bitcoin futures contract being developed by the parent company of the New York Stock Exchange, news about its approval are expected to arrive in late January. Once CFTC officials consider and move to approve, a public commenting period will be held for 30 days. The futures contract will be offered by Bakkt, a financial technology company that enjoys support from the Intercontinental Exchange, owners of the NYSE, the Euronext, and the Chicago Stock Exchange.
Should Bakkt or any of the ETF applications be approved in 2019, market analysts believe it will give a green light to investors to welcome a cryptocurrency rally, although it will not necessarily be similar to what was experienced in 2017. At this point, the BTC/USD forecast of $10,000 is highly dependent on major developments such as SEC approvals.