Bitcoin followers are assigning far too high a likelihood that regulators will OK a fund that tracks the cryptocurrency, which is too bad because approval would provide a major boost to its price, according to one analyst.
Regulators at the Securities and Exchange Commission are weighing whether to approve an exchange-traded fund proposed by Cameron and Tyler Winklevoss. The SEC has been considering a proposal that came into being more than three years ago. The Winklevoss brothers are looking to list the ETF on the Bats exchange.
Should the fund gain approval, it would attract a flood of investor cash that could hit $300 million, according to investment bank Needham and Co. The total value of bitcoins in circulation was $13.8 billion as of Tuesday afternoon trading.
That's the good news.
The bad news is that Needham analysts believe there is very little chance the SEC actually will go ahead and approve the ETF. They say the chances are probably less than 25 percent.