There are many goals that are being collectively pursued within the cryptocurrency industry. These include the facilitating of cryptocurrency transactions on mainstream platforms, the passing of crypto-related laws, and, of course, the approval of a Bitcoin Exchange Traded Fund.
A bitcoin Exchange-Traded fund (or bitcoin ETF as it is commonly called) would be an investment tool that tracks the value of bitcoin and lists it on traditional exchanges like the NYSE. over the years, many firms from Robinhood to Gemini have applied for a bitcoin ETF over the years and all have had their applications denied. Now it seems another company is taking a shot at the much-pursued bitcoin ETF.
Morgan Creek and Exos Apply for ETF
The latest of these attempts took place on November 19, 2020, when Morgan Creek Capital Management and Exos Financial applied to the Securities and Exchange Commission for a bitcoin ETF. Should they be approved, they will be able to launch the first bitcoin ETF in the United States, which is a highly coveted goal.
The ETF has been sought after within the industry because it offers the opportunity for mainstream investors to become exposed to cryptocurrency as an asset class. As of now, crypto is sold on traditional crypto exchanges and these puts them in a separate category from more traditional assets.
With the ETF, more attention and institutional support can be gotten for cryptocurrency. This is particularly because ETFs help to insulate investors. By their nature, investors may allocate funds towards crypto investments without having to actually buy the cryptocurrency. As such, they do not have to deal with wallet security, token transfers, and the other responsibilities of being a crypto holder.
While this goal has proven elusive in the past, the last few years have shown major financial institutions throw their support behind the crypto industry. This, coupled with the maturity the industry has seen, means an ETF has a better chance of being approved now compared to a few years ago.
This does not mean that the industry is completely out of the water yet. Market research by Exos has revealed that the market volatility experienced by crypto needs to be sorted out before it can be accepted by investors.
“The Fund will fully allocate capital to bitcoin when its indicators are positive and reduce or exit its position when its indicators turn negative,” the research says.
Want to learn more? This article might be of interest to you: