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Wealth Manager Canaccord: Bitcoin ETF Approval More Likely in 2019

The latest crypto-market report from wealth managing firm Canaccord Genuity posits that a long-awaited approval on a bitcoin exchange-traded fund (ETF) likely won’t come until 2019.

In their quarterly update on cryptocurrencies, Canaccord Genuity, Canada’s largest independent investment dealer in Canada, dives into a range of topics, including the topic of security tokens and recent developments in cryptocurrency spot prices.

Yet it also hones in on the popular topic of the bitcoin ETF, which the crypto-community has viewed with renewed fervor following a proposed rule change by CBOE, which is seeking to list such a product in conjunction with money manager VanEck and crypto startup SolidX.

And while acknowledging the interest – and hopes – of those supporting the ETF, Canaccord puts forward the view that the SEC will extend its decision timeline as far as it can – until next March. By contrast, the SEC could, in theory, make a decision as soon as this Friday, August 10.

“And although the VanEck SolidX Bitcoin Trust, seen by many as the most formidable candidate for a potential approval, is due for a potential decision as early as this month, it is largely believed that the SEC will extend its deadline, in which case a decision may not be made until March 2019,” the firm wrote.

And as Canaccord sought to highlight, other investor-oriented products of a similar nature are already available on the market – outside of the U.S., that is.

“Meanwhile, we note that other bitcoin-based securities (e.g., Bitcoin Tracker One) have been available for trading on regulated exchanges as early as May 2015 in Sweden, while north of the border, Canada is working towards its own bitcoin ETF product, the Evolve Bitcoin ETF,” the firm wrote.

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Wealth Manager Canaccord: ICOs Could Become Commonplace

Initial coin offerings (ICOs) could one day come to be seen as similar to initial public offerings (IPOs), according to a new report from financial services firm Canaccord Genuity.

Canaccord’s fourth-quarter “Crypto Quarterly,” published on Nov. 14, provides a broad overview of the cryptocurrency space, the highest-capitalized coins and the trends expected to shape the ecosystem in the months ahead.

On the subject of token sales – or offers of custom cryptocurrencies used to bootstrap new blockchain networks – the company, which reported more than $54 billion in assets under management earlier this month, said that today’s comparatively high-risk environment could become more normalized within the next 20 years.

That is, of course, if the overall cryptocurrency market becomes more ubiquitous and major players from the current financial services sector become involved.

Canaccord’s analysts wrote:

“If, over the next [one to two] decades, the coin market evolves to a more mature state such that one day most coins are attached to well-established companies and trade with sufficient liquidity so as to reduce risk, we believe the gap between ICOs and IPOs will look fairly small. We are obviously not there yet, so in our opinion, while ICOs may hold a great deal of promise, they have to be viewed as extremely risky.”

Whether that process plays out remains to be seen, but recent data from CoinDesk’s ICO Tracker details the interest thus far around the blockchain funding model.

In September, for example, nearly $490 million was raised through ICOs, with the all-time cumulative amount collected coming in at more than $3.3 billion to date.

The full report can be found below:

Crypto Quarterly Q4-17 by CoinDesk on Scribd

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.