Ultimately, bitcoin investors may have to make do without a bitcoin ETF for a while, especially if as some suspect, not only Chinese traders, but local HFTs have taken over trading of the extremely volatile product. Still, that may be a good thing: failing to get ETF approval will simply keep bitcoin extremely volatile, which is also why it has become the darling asset of a subset of traders starved for volatility in a world where central banks have eliminated virtually any daily gyrations from the equity class. As such, we would expect bitcoin vol to only grow, not decline, in the process making the attainment of the bitcoin "holy grail" that much more improbable.
Tyler Durden
Source: zerohedge.com