The Securities and Exchange Commission’s pending decision on what would be the first exchange-traded fund (ETF) for bitcoin price tracking in the United States is generating a lot of buzz as the date of the decision draws near.
First, a bit of background. Nearly four years ago, Cameron and Tyler Winklevoss—known for slapping a lawsuit on Facebook founder Mark Zuckerberg—applied for the digital currency ETF with the SEC. The “Winklevoss Bitcoin Trust” was created essentially to provide exposure for commodity buyers to bitcoin, operating like an investment fund that can be traded like stocks. The twins are expected to receive the final decision on whether they can list their ETF on the Bats Exchange on March 13.
Investors and bitcoin traders are confident that SEC will approve the listing, which will pave the way for other ETF listings and even unleash the flow of institutional money.
“We have spoken to a number of our investors, particularly from the U.S., who have indicated to us that they have been buying bitcoin,” Daniel Masters, portfolio manager of Global Advisors Bitcoin Investment Fund Plc, told Reuters. “They think the Winklevoss ETF and other bitcoin ETF listings will succeed.”
What’s in a date?
It is understandable that a lot of people are excited as the March 13 date comes closer, causing the price of bitcoin to surge more than 20 percent this year due, in part, to speculation about the Winklevoss ETF. But the March 13 data is also causing unease in others since it is the same date as the Fukushima disaster—a bad omen.
What is important to note, amid all the hoopla, is that the SEC approval is only the first step in the long battle to get a bitcoin ETF listed on an exchange. Will the digital currency community win on March 13? Nobody knows for certain, but what everyone is sure of is that the date will mark one most important battles for digital currency.
Current bitcoin price
The price of bitcoin inched closer to $1,200 level ahead of the SEC decision, trading at $1,199 early Friday morning.