Bitcoin ETF is about to pass the test, and the agency said that approval will help curb market volatility

China Securities Network News (Reporter Wang Zhoujie) The U.S. Securities and Exchange Commission will make a decision on whether to approve the Winklevoss Bitcoin ETF on March 11. As this time point approaches, the price of Bitcoin fluctuates.

According to OKCoin, at 17:05 Beijing time on the 9th, the price of Bitcoin in US dollars was $1,179.43, an increase of 0.02%. Last week, the price of Bitcoin surpassed the price of gold per ounce for the first time in history, but it fell slightly this week.

Analysts at OKCoin pointed out that there are more than 12 million bitcoins in the world, across more than 100 countries, with more than 10 million bitcoin players, which also means that the price of bitcoin will be affected by multiple global factors. From the trend of last year, the main factors affecting the price of bitcoin are: halving of bitcoin production, the UK referendum "Brexit", and the global popularity of blockchain technology.

Three years ago, the US asset management company Winklevoss first applied to the US Securities and Exchange Commission to launch a Bitcoin ETF: Winklevoss Investment Trust, hoping to trade on the BATS exchange dominated by high-frequency traders. In addition, SolidX Partners also applied to regulators for a Bitcoin ETF in July last year, which may be listed on the New York Stock Exchange in the future.

The agency believes that for Wall Street investors, Bitcoin, an eight-year-old cryptocurrency, is still a small asset, but after its listing, the Bitcoin ETF (index stock fund) can serve as a bridge to help Bitcoin move from its current non-mainstream role to mainstream status.

Analysts at OKCoin also pointed out that the goal of the Bitcoin ETF is to provide a product that is more accessible to investors and can also suppress the volatility of Bitcoin to a certain extent. However, it still cannot eliminate all the risks of Bitcoin, and this ETF will still be more risky than most other ETFs. But if the Bitcoin ETF can be approved on March 11, it will represent a milestone for the Bitcoin community. Analysts say that the existence of a Bitcoin ETF will allow authorized participants to issue shares based on real Bitcoin holdings, which may become a catalyst for new liquidity in Bitcoin.