Daily Bitcoin News Update
After the success of Bitcoin futures, Cboe Global Markets Inc (NASDAQ:CBOE) is planning to launch Bitcoin exchange-traded funds (ETFs). If materialized, these Bitcoin ETFs will be another giant leap for Bitcoin as it forges its way into the mainstream world of investments.
The President of the Chicago Board Options Exchange (Cboe) wrote a letter to the U.S. Securities and Exchange Commission (SEC) last week, urging it to consider approving Bitcoin-based ETFs.
The extensive letter addressed the concerns raised by the SEC earlier this year regarding the launch of Bitcoin exchange-traded products (ETPs) to U.S. investors.
Not only did the Cboe President respond to the concerns immaculately, he also made his demand point-blank; that is, the SEC should “approach Cryptocurrency ETPs holistically and from the same perspective that it has historically approached commodity-related ETPs.”
The Cboe President also pressed that the SEC should “not stand in the way of such ETPs coming to market.” (Source: “Re: Staff Letter: Engaging on Fund Innovation and Cryptocurrency-related Holdings (the “Staff Letter”),” Cboe, March 23, 2018.)
Recall that Cboe was the first derivatives exchange to launch Bitcoin futures on December 10, 2017. Following in its footsteps, the Chicago Mercantile Exchange (CME) began trading BTC futures a week later.
Leading up to these launches was a stunning rally in Bitcoin prices.
Chart courtesy of TradingView.com
Between these launch days, Bitcoin prices attained their maximum height. The market went berserk as speculators scrambled to get their hands on the top cryptocurrency.
Imagine what were to happen to prices if more Bitcoin-based investment vehicles made it to the market. It doesn’t take one to be a genius to guess that prices would burst into another rally.
Note that not only do these products attract speculators, they also bring in new Bitcoin investors. They increase Bitcoin’s prominence in the market and establish it as a worthwhile commodity to invest in.
The Cboe President hits the nail on the head when he explains, “This approach will allow investors to gain exposure to more mature cryptocurrencies through ETPs without the additional complications and risks of the spot market and help to ensure that American capital markets remain fertile ground for capital formation and financial innovation.”
The idea of Bitcoin ETFs is music to our ears and bolsters our Bitcoin price prediction for 2018. These new products may give us a chance to witness another stunning rally in BTC prices.
However, I must point out here that this rally may be short-lived just like its predecessor. Once the speculators will exit, prices will fall back into stable territory. But rest assured, this stable territory may form close to our Bitcoin price target of $15,000.