Op-Ed: Why Bitcoin ETF Approval Could Catalyze The Biggest Bull Run Yet

The current Bitcoin ETF proposal awaiting SEC has captured a significant amount of attention within the cryptocurrency ecosystem, with investors and traders eagerly anticipating a mid-August decision that could decide the fate of the 2018 crypto market.

Should the approval for a Bitcoin exchange-traded fund succeed, the cryptocurrency market could potentially experience a never-before-seen influx of capital as institutional capital, speed traders, and accredited investors move into the crypto space for the first time.

The Bitcoin ETF proposal, submitted as "Notice of Filing of Proposed Rule Change to List and Trade Shares of SolidX Bitcoin Shares Issued by the VanEck SolidX Bitcoin Trust" on June 26, is currently under consideration by the US Securities and Exchange Commission.

The SEC typically has 45 days to make a ruling on a proposed rule change, which would leave the final date for a decision on Bitcoin ETFs as halfway through August.

"We believe that collectively, we will build something that may be better than other constructs currently making their way through the regulatory process. A properly constructed physically-backed bitcoin ETF will be designed to provide exposure to the price of Bitcoin, and insurance component will help protect shareholders against the operational risks of sourcing and holding Bitcoin."

"The Trust intends to achieve this objective by investing substantially all of its assets in Bitcoin traded primarily in the over-the-counter markets, though the Trust may also invest in Bitcoin traded on domestic and international Bitcoin exchanges, depending on liquidity and otherwise at the Trust's discretion."

Notably, the availability of a Bitcoin ETF within the US would make simple, streamlined Bitcoin purchases available to institutional investors, less technically adept investors, and speed traders.

The impact of speed traders, who typically execute extremely high volumes of trades, could potentially have a significant impact on the price of Bitcoin - as evidenced by the presence of speed traders in the European Bitcoin ETF market.

An increase in the overall demand for Bitcoin is highly likely to exert a strong positive influence on the price of Bitcoin.

Co-founder and CEO of BitMEX Arthur Hayes recently predicted a massive rise in Bitcoin value should the SEC approve the proposal, stating that an ETF would bring real money to the table in an interview with CNBC's Fast Money.