A Run Through on Mechanism of Cryptocurrency ETFs and Regulatory Aspects

In this write-up, we run you through the mechanism of cryptocurrency ETFs and relooked at the SEC’s approach towards the approvals of such ETFs. 

Quite a few investment veterans ponder over the approval of a bitcoin ETF could be the major driving force of the bull run in the crypto avenue, which seems to be the most likely event and vice versa to the contrary.

First and foremost, let’s just quickly understand what exactly does this trending topic (BTC ETF) mean, we all know that an ETF is an investment method in marketable securities through which one can track the performance of a particular asset class. Such a scheme enables shrewd investors to diversify their investments risks by not investing in ETF-driven assets.

Now, bitcoin ETF would be the replication of its underlying price, that enables investors to participate in this space by avoiding the complexities of the bitcoin trading process. Furthermore, ETF holders wouldn't be precisely invested in bitcoin itself, then there is no question of complexities of the trading process, such as security and storage apprehensions among cryptocurrency space.

In addition to that, before jumping the guns and drawing the conclusions whether ETF approval can propel bitcoin’s bullish or bearish price action, it is wise to reckon as to how do bitcoin ETFs and futures contracts affect the crypto market share and the intrinsic value? And what other crypto investment tools can investors look forward to in 2019.

It seems that investors are dealing their money with unregulated cryptocurrency instruments with absolutely zero recourse as they are losing a considerable sum of money they've put at risk, regulation will begin to solve those issues and keep client assets' onshore, as per the sources.

We kept reiterating on the U.S. SEC’s eagle eye on the crypto regulation that has prolonged while having embraced the market even while fighting to fend off fraud.

Because of some sensitive intricacies of this trading mechanism. For instance, the pricing of NAV (Net Asset Value) accurately is quite significant as it defines the amount an authorized participant sends or receives during the course of the creation or redemption process. The US SEC should be cautious on this matter as the cryptocurrency price is highly volatile and exchange prices can vary, correspondingly NAV portions would also be inaccurate.

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards 89 levels (which is bullish), USD at 80 (bullish), while articulating (at 12:21 GMT).

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex