Bitcoin ETFs could become a reality within 18 months. In an interview for Bloomberg, Ali Hassan, CEO and co-founder of Crescent Crypto Asset Management, said that the US Securities and Exchange Commission (SEC) could approve a Bitcoin ETF in the next 18 months.
Bitcoin ETFs coming soon
The former Goldman Sachs executive, was questioned on the rejection of the Winklevoss Bitcoin ETF application on July 26th, but whilst acknowledging the US regulator’s concern about investors’ protection, he went on to say that the proposed passive investments could reduce some of those concerns, and that it will “actually increase the participation in the [cryptocurrency] market.”
“We do think that a product is coming soon,” said Ali Hassan. “Perhaps, in the next 18 months, we’ll see a Bitcoin-only ETF”
The fund reduces the volatility by holding 20 coins with different levels of correlation while considering the 90-day trailing average market capitalization, as this “mutes the volatility” of the portfolio relative to a portfolio with Bitcoin alone. Hassan also disclosed that they are avoiding the risk of exchanges by keeping all the assets in cold storage.
Multi-coin ETFs on the horizon
The asset management firm reportedly holds about $50 million in assets in a diversified flagship portfolio. In this context, Hassan added that what’s really interesting are the multi-coin products, which he thinks are “going to transition the ecosystem from just access into looking at this as a different asset class.”
On being asked about the BTC prices his answer was “To the moon! We’re expecting it to go much higher”
Next in line awaiting a Bitcoin ETF approval by SEC is investment firm VanEck and financial service company SolidX. A decision by the SEC is expected by August 16th. Whichever way the decision goes, the outcome is sure to make a major impact in the crypto space.
Disclaimer: This article is for information and entertainment purposes only and should never be construed as investment or trading advice. Bitcoin and other cryptocurrencies can be extremely volatile and you should always do your due diligence and research on the topic, utility, product or service and legal and regulatory requirements before deciding to invest. We do not take any responsibility for possible losses you may incur.