While there are plenty of places to buy bitcoin, many investment funds can only hold assets that meet certain regulatory standards—such as approval from the SEC.
Pessimists… can point to two sets of concerns that could lead the SEC to give the thumbs down. The first of these relates to how the Winklevoss intend to run the operation. Some people are uneasy that the proposed ETF would use Winklevoss-controlled businesses to source and store the bitcoins that would back the shares.
If the SEC says no, it will have a negative effect, though probably not a very dramatic one. The reason is there are two other ETF application[s] before the agency.
…there is a general feeling that approval for a bitcoin ETF of one type or another is inevitable, and so a rebuff by the SEC to the Winkelvoss proposal would only be a temporary setback.
One of the other 2 apps in front of the SEC includes an ETF that proposes to insure it’s assets.
It’s not a matter of if any longer. It is simply a matter of when.