What is a Bitcoin ETF, will the U.S. SEC Approve any in 2021?
Indeed. The only problem is that the U.S. Securities and Exchange Commission (SEC) is hesitant to give the greenlight.
But first things first.
What is a Bitcoin Exchange-Traded Fund (ETF)?
In reality, a Bitcoin ETF is nothing different from a traditional ETF. They share the exact blueprint.
A Bitcoin ETF is a fund designed to track the value of Bitcoin—as expected. However, the only difference is, instead of this fund trading in a cryptocurrency exchange—regulated or not, they will trade in traditional bourses.
It would be effortless for investors to pour millions—if not billions, into Bitcoin through a Bitcoin ETF. Investors won't have to use a cryptocurrency wallet.
What's more, from traditional exchanges and brokers, investors would easily trade on leverage. At the same time, the approved Bitcoin ETF would have the advantage of tax-sheltered registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs).
Over 12 Bitcoin ETF applications have been rejected by the SEC.
To optimists, this could be the year the SEC says yes. The market's liquidity is deeper, heavyweights are enjoined in applications, and regulators in other countries—including Canada and Brazil, have approved several ETFs.