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What if SEC approves any of the Bitcoin ETFs? The glimpse over anomalies of digital currency regulations

Co-Founder at Winklevoss Capital, Cameron Winklevoss speaks onstage during TechCrunch Disrupt NY 2015 - Day 3 at The Manhattan Center on May 6, 2015 in New York City. TechCrunch/flickr

Winklevoss Capital Management LLC, launched the Winklevoss Investment Trust, the first proposed bitcoin ETF more than three years ago. Consequently, as a matter of regulatory framework, the trust had filed to trade on the BATS exchange rather than on the New York Stock Exchange (NYSE) in last June of 2016. Two other bitcoin ETFs, the Bitcoin Investment Trust, and the SolidX Bitcoin Trust, have also filed with the SEC to be listed on the NYSE and would also give ordinary investors more access to bitcoin investing.

Should the Securities and Exchange Commission (SEC) approve the Winklevoss bitcoin ETFs on March 11, a huge speculative rush on bitcoin is expected, approval to sink $300 m in bitcoin market.

Once approved, an easily accessed ETF would provide a chance for average investors to participate in the bitcoin market, bringing droves of new investors.

Speculations suggest, should this ETF proposal be approved, approximately around more than $300 million of institutional capital will flow into the bitcoin ecosystem. This is expected to boost bitcoin’s price.

Chris Burniske, blockchain products lead at ARK Invest, which holds shares in Grayscale’s bitcoin trust, said the fall in the trust’s premium indicates investors are following a wait-and-watch tactics.

Only qualified investors could invest briskly in the trust. The trust’s market capitalization was $205.6 million last week. The trust, a taxable registered security, could attract institutions as well as individuals seeking to add bitcoin to retirement accounts, Burniske said.

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