Investors won't see Bitcoin ETFs any time soon. Here's why:

Another Bitcoin ETF proposal has been rejected. Again. Thus, all the expectations for an exchange-traded fund that invests in Bitcoin have been pushed out until at least the end of the year as the U.S. regulator seeks comments on a listing request.

There were more than 1,400 comment letters on a proposal to list an ETF from Van Eck Securities Corp. and SolidX Management, yet the Securities and Exchange Commission wants even more feedback. Those who wish to comment have 21 days after the SEC’s order is circulated in the Federal Register, while rebuttals have 35 days from that date.

The agency now has until at least late December this year to choose whether to approve or disapprove the ETF, with another two-month extension possible.

Following quite predictable decisions by the SEC, it is fair to say that investors probably will not see Bitcoin ETFs any time soon. Here’s why:

• It's really questionable whether rejected ETF projects could make any viable changes that would remove the fears that U.S. Securities and Exchange Commission currently has. 
• The concern of the SEC is not the structure of the ETF as such. It is the Bitcoin market itself. 
• The SEC has been really consistent as to what they need to be answered before the ETF can be approved.
• One of the key concerns here is manipulation, and there're no strong arguments that this could be prevented.

Bringing it all together

In very simple terms, as long as the SEC has doubts about Bitcoin market manipulation (including whether Bitcoin is less susceptible to manipulation than other commodities that back exchange-traded products), the Bitcoin ETFs are highly unlikely.

Another question (which is probably the key one) is whether it is actually needed?

I have shared my thoughts on this in my earlier article here. But what do you think? ??

P.S. You might enjoy my earlier pieces as well:

?? All you need to know about Bitcoin ETFs now

?? FinTech Predictions for 2018

?? Blockchain Predictions for 2018

?? Bitcoin is NOT a Currency, and Never Will Be

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About: I am a business developer, sales professional, FinTech strategist, as well as Cryptocurrency and Blockchain enthusiast. I'm highly passionate about Financial Technology and Digital Innovation, and strongly believe that it will change the world for the better. Apart from my daily job at one of the leading alternative banking and payments providers in EEA, I'm an active member of FinTech community and a TechFin evangelist.

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