In fact, 2021 is already the year of a bitcoin ETF, but not in the U.S.
On February 18, 2021, an ETF bitcoin was launched in Canada. It is called Purpose Bitcoin ETF (BTCC) and has been trading on the Toronto Stock Exchange since Thursday.
Given that the fund is available in Canadian and US dollars, it is possible that it will also be used by American investors or speculators and, if that happens, it could pave the way for the launch of a bitcoin ETF on some American exchanges.
In fact, there are already a number of similar derivatives traded on exchanges in Europe, but not yet in the United States, and BTCC is by far the largest in North America.
The biggest market for bitcoins is the United States of America, so the fact that there are already similar ETFs abroad is less important than the fact that there are none in the USA.
Of course, the success or failure of the Canadian ETF could also have ramifications for the SEC’s decisions in this regard.
It is recalled that, to date, all similar proposals sent to the US Securities and Exchange Commission have been rejected or withdrawn, albeit in a different context.
Institutional investors want Bitcoin ETFs
In 2020, many institutional investors entered the crypto market, and this is clearly changing the scenario. Despite this, the SEC still seems somewhat doubtful about a bitcoin ETF in the United States, not least because it would be a product aimed at retail investors.
With regard to institutional investors, there are already several products that allow them to take positions in cryptomercados, some of which are quite advanced. What is lacking in the American market is a tool for retail investors that allows them to take positions easily, without having to deal with the purchase and storage of tokens.
But the scenario has changed so much in the past 12 months that some bet that this could be a good year. For example, a few days ago, the New York Digital Investment Group (NYDIG) placed a new request to the SEC for approval of its NYDIG BITCOIN ETF, launched in partnership with Morgan Stanley.
It is important to note that the presidency of the US government agency that oversees financial markets has also recently changed.
The launch of an ETF bitcoin on the United States stock exchanges would instantly give tens of millions of people the opportunity to gain exposure to BTC extremely quickly and easily. In fact, there are already apps that allow people to do this, like Robinhood, but they are aimed at a much younger age group than those that generally have big assets.
The fact that the Toronto ETF already showed clear signs of strong interest on the first trading day suggests that there may be a good chance that the SEC will approve one for the US as early as 2021.
Optimism, in this case, however, often ends up being excessive, as it has been in the last two or three years, for example.