There’s still hope for a Bitcoin ETF? Is it really necessary?
When it comes to the approval of a Bitcoin ETF, the American stock exchange, supervision hard. In recent years, the Securities and Exchange Commission has rejected many Bitcoin ETFs, the number of rejected proposals is now about 10.
The latest rejected proposal came from Wilshire Pheonix, a New York-based asset management company. After the news of the rejection was announced, the company said that it was “very disappointed” about the decision of the SEC, since they have left no stone unturned in order to meet the Compliance Standards and the expectations of the Commission. This rejection, however, may not necessarily mean the end of all these efforts. During a recent segment of CNBCs ETF Edge, Chris Hempstead, Director of institutional business development at IndexIQ, claiming that this will be in spite of the recent rejection of the last Time the market hears of a Bitcoin ETF proposal.
According to Hempstead, potential organisations will continue to analyze the Feedback from the SEC and their comments to develop a better proposal can then be submitted to the Commission. He added,
At some point, if the market demand, the demand of investors pushes the pendulum to a certain area, you look at it, probably once, and a different kind of thinking.
The IndexIQ-the leader went on to say that he believes that will not change the General mood of the SEC, compared with a Bitcoin ETF in the near future. Nick Colas, co-founder of data trek Research and another guest in the segment, said the same with the Argument that it is quite possible that a crypto-currency Bank of a Central in front of a Bitcoin ETF a reality.
Hester Peirce criticized the SEC sharp
Both the observations and the predictions of the executives say in the light of the lone dissenting voice on the Board of the SEC interesting. Shortly after the above-mentioned proposal was rejected, accused the SEC Commissioner Hester Peirce, an active supporter of the crypto-period, and your colleagues for a “unique, elevated Standard”. Peirce had said in a statement, rejecting that the list of rejections in relation to a Bitcoin ETF is a telltale sign that the Commission was not ready to commit to the market, investors and organizations in any way with Bitcoin-related products.
In addition, they expressed their own concerns that such a conservative approach to Bitcoin-related products could lead to a Stagnation in terms of entrepreneurship and the development of new opportunities. A possible reason why the SEC could block a Bitcoin ETF, however, is that the increasing demand for and valuation of Bitcoin could reduce the global dominance of the USD. Although many proponents of litigation in this area is still not on the rejected Bitcoin ETF, it could be a blessing in disguise, as a cash-settled Bitcoin ETF could worsen the valuation of Bitcoin in the end.
A physically safe Bitcoin ETF proposed by people like VanEck and the Winklevoss Trust, would be interesting, since it is supported by Bitcoin. The Situation changes in the case of a cash settled Bitcoin ETF, since the entire capital would flow from the institutional side, would land in the accounts of the organization that runs the ETF. Theoretically, will improve the price of Bitcoin only, if the money flows in the market capitalization of Bitcoin. In addition, the “printed Bitcoins would run” for an ETF the limited supply of Bitcoin under. If a “paper-Bitcoin-ETF’s”, such as the Wilshire Phoenix really positive for the crypto market, it seems more than questionable.
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