It’s been a long time coming, but some analysts believe we are now closer to the U.S. regulatory community excepting a Bitcoin exchange traded fund, partially because of innovations in tracking cryptocurrency transactions and monitoring potential manipulation.
News from Coindesk shows the Solidus company has created one such tool that they feel will be effective in flighting potential manipulation such as wash trading, where frivolous transactions pump up volume artificially.
“Proponents (of a BTC ETF) say an ETF would make bitcoin accessible to a wider swath of retail investors by offering a regulated product that would be available on major investment platforms, such as Charles Schwab or TD Ameritrade,” writes Nikhilish De. “However, a number of ETF applications have been rejected by the SEC, which has said the bitcoin market isn’t large enough to properly surveil. Chairman Jay Clayton, who will leave the role at the end of the year, has said in the past that a bitcoin ETF couldn’t be approved until the agency is confident the market was free from manipulation.”
The Solidus tool would collect monitoring information in a multitenant database, and allow outsiders and auditors to observe the process in ways that might make the SEC more amenable to offering investors one of these easy market funds for getting into and out of Bitcoin positions during a market day.
The solution from Solidus can also be made to operate in multiple jurisdictions.
For investors, this is a big deal. Yes, some of the more tech-savvy among us may have already built their BTC kingdoms, but millions have the potential to get involved, ballooning the total volume leagues above what it is right now. Proponents of future BTC explosion note that Google searches for Bitcoin are still low, and an ETF would be one of the biggest superhighways to popular BTC investment ever built. Stay tuned.