It looks like the hopes of a BTC ETF (exchange-traded fund) are not lost. An exchange-traded fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds (BTC in this case) and generally operates with a system to keep the asset close to its net value. They are a big step towards regulation and will allow institutional investors to get involved, such as large pension funds and banks. More than US$2 trillion were invested in ETFs in the United States between when they were introduced in 1993 and 2015.
Edward Lopez, pictured above, is head of ETF product management at VanEck and leading his firm in their BTC ETF case. The $41.3 billion firm can lay claim to five of the top 20 best-performing ETFs last year. Its winning strategies — which tapped growth opportunities in Russian and Brazilian small-cap stocks, as well as in steel, coal and gold — soared as much as 104%. Now he looks to BTC. The difficulty he faces is BTC’s high level of volatility which is a strong turn off for regulators and a reason for the reason denial of the Winklesvoss ETF. Let’s wait and see how it goes down.