The US regulators are unlikely to launch a Bitcoin ETF (exchange traded fund) this year, but an expert from China claims that after the approval of ETFs dedicated to cryptocurrencies operators, the market will see many benefits. Mainly related to the increase in credibility of BTC and the jump in volumes.

ETFs on Bitcoin – it is better not to dream about it in 2020.

bitcoin etfMatthew Graham, CEO of Chinese consulting firm Sino Global Capital and general partner at Liquid Value, spoke on the above issue during the AMA session organised by TokenInsight last week.

Among other things, Graham said that regulators have repeatedly rejected BTC-based ETFs and are unlikely to change their mind this year. But he has good news. He believes that the situation may change, but only in 2021. He added that the SEC’s slowness may be due to the conservative nature of the institutions in the United States, in particular the regulators, who are cautious about any innovations.

According to Graham, however, if the Bitcon ETF is finally created, it may lead to the inflow of new institutional capital into the market.

New bubble

It is also not difficult to imagine that the green SEC light for ETFs will lead to a significant jump in demand for cryptocurrencies. The new bubble may even stand for this type of event.

And the chances are real. As Graham noted, SEC President Jay Clayton said a few months ago that “progress has been made” on this issue. This is a good sign.

Earlier attempts

Meanwhile, attempts to create a Bitcoin ETF have been going on for several years. They are supported by the Winklevoss brothers, creators of the Gemini exchange, one of the largest in the USA. Unfortunately, so far no one has managed to achieve more success in this field.

Entering the market of this type of fund would be a dot over the “i” in the topic of BTC’s entry into Wall Street and the mainstream. So will it really be possible to achieve this in 2021? Today, it is difficult to forecast it clearly, because the market has met with many disappointments in this regard…