Many bitcoin aficionados are waiting with baited breath as the SEC is to announce by this Friday whether they will approve the first registered bitcoin ETF. This is not the make or break event that many think it is, though. As a matter of fact, if the ETF is denied and the bitcoin drops, I’ll consider it an opportunity.
European Bitcoin Acceptance
An ETF will allow institutions to flood into Bitcoin through registered vehicles. Whether the SEC approves the Winkelvoss twins ETF is beside the point, institutions interest is already sparked and the money will come in anyway. Bitstamp, one of the world’s largest bitcoin exchanges, is partnering with one of the largest French banks, Crédit Agricole, to facilitate bitcoin acceptance at investment funds. According to Coindesk:
…launch a new service aimed to allow bitcoin to be accepted by investment funds.
For its side of the deal, CACEIS, the asset servicing branch of the bank, will provide services covering clearing, depositary and custody of bitcoin bought in through the exchange.
The goal of the partnership is to increase capital inflows to new investment funds by providing an alternative funding method in the form of the digital currency. Fund promoters, working with CACEIS as a transfer agent, can start accepting bitcoin for fund subscriptions as soon as Q2 2017, the firms indicated.
Bitstamp CEO, Nejc Kodrič, sees the partnership as a foothold for bitcoin to be used for mainstream, legitimate investment opportunities,
“Bitstamp’s first partnership with a market-leading, asset-servicing bank like CACEIS means bitcoin investments can now be made within fully licensed and regulated framework,” he said.
As bitcoin gains traction, it’s easy to see why some investors are picking up interest. In jurisdictions with capital controls, using bitcoin circumnavigates regulatory headaches and streamlines cross-border payments.
