Crypto commentators predict BTC ETF about a year away. What would this mean?

18 Sep, 2018
by Arthur Sillers
Crypto commentators predict BTC ETF about a year away. What would this mean?

While proposals for a Bitcoin ETF continue to be rejected by the SEC, many are still looking at crypto derivatives as the next driving force behind the growth in the crypto marketplace.

A derivative is a kind of contract entered into to supply an investor with capital, who then invests in the actual asset. There are a number of reasons to do this, for example investors can lock in guaranteed rates of return which provides insurance. In order for crypto derivatives to get major buy ins from investors, the cryptoverse is attempting to get a Bitcoin ETF approved to gain institutional confidence.

BitMEX has been early to start providing crypto derivatives in China, and it is getting positive results. BitMEX recently set a record of one million BTC in a day for trading volume on an exchange and is worth about $800 billion in trades overall, according to Bitcoin Exchange Guide.

Speaking to Crypto Briefing, Fran Strajnar, the CEO of Techemy says that while crypto derivatives are not yet approved in the US, they will be approved before a Bitcoin ETF and will do so within a year.

Strajnar notes that reading the ETF proposals themselves did not give him confidence that regulators will soon be ready to accept frameworks which he describes as insufficiently proving that they can provide the liquidity and reasonable trader confidence.

When, or rather if, crypto derivatives are approved by the SEC, crypto value rise astronomically quickly as institutional capital pours in. For those who already hold Bitcoin, this would be an ideal outcome, so if Strajnar is indeed right about his prediction, early adopters may get a windfall within the year.

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Read more about:Bitcoin (BTC)


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