With a lot of talk about the Winklevoss ETF application being rejected by the SEC, the cryptocurrency market is hopeful for the next one in consideration. The next one in consideration is the application from the Chicago Board Options Exchange on behalf of VanEck and SolidX.

The word on the matter that is making the rounds in the community is that the proposal was rejected because the Winklevoss proposal was very loosely worded and they aren’t known to have the best history. However, the reasons stated by the SEC was that they fear high-level market manipulation and lack of liquidity.

But the fact remains that not all ETF’s proposals are assured to pass without being stopped and the SEC has reiterated multiple times in their report that they have rejected it because of the proposal and not because of any animosity or resistance that the regulatory body has for Bitcoin and the cryptocurrency.

However, how much will the approval of the Bitcoin ETF actually affect the situation on the ground? Will the price actually shoot up? What changes can we expect to see? And will it be as big as the gold ETF?

So this is what is expected to happen. With the approval of the Bitcoin ETF of any company that is currently in consideration, Bitcoin and subsequently all other cryptocurrencies will become a part of many periodically maintained portfolios of accredited investors and also of personal portfolios.  

The approval of the ETF license will allow newbies to enter the market without putting themselves in a position at which they run a high risk of losing their investment. The new players don’t even have to complete a KYC process for wallets and asset management companies because the exchanges that offer the ETF will look after that part. Another important thing that will happen for users that use ETFs for Bitcoin, will at any point only risk losing 0.5% of their portfolios. Which makes the market just as volatile as any other.

Finally, the approval of an ETF by the US SEC is just as good as legalizing and lending legitimacy to the cryptocurrency industry. And will be held at just as high a regard as another ETF in any other industry. This, in turn, will allow more companies to start dealing and accepting them and hence will act as a gateway for more and more skeptics to convert into the pro-crypto community. And thereby, yes, the prices of Bitcoin and thereby the prices of all other cryptocurrencies will go up.

The approval of any of the Bitcoin ETF applications that are currently under consideration will lend legitimacy to the market and will proactively affect the status of the bitcoin market advantageously. And the chance of Bitcoin becoming an asset among the types and like of Gold is highly probable.   

Also, read How is CBOEs Bitcoin ETF application different from Winklevoss’