ETF is shaking the foundation of cryptocurrency world again. Everything in the the world of crypto depends on it, or at least people tend to think like this. It is pretty obvious that as soon as the first ETF is issued, bitcoin prices will skyrocket, and rising prices will drag the altcoins after them. But the things is - ETFs keep getting shot down.
In the recent history, bitcoin suffered a massive blow when “Evil Twins”, Winklevoss brothers felt “no love” from SEC, that rejected their ETF again. Then Direxions asset management got delayed until late September. This week there was another heavy blow, when VanEck-SolidX ETF proposal got delayed as well.
Markets after the last news - markets outright collapsed, the whole market cap for the cryptocurrency market slumped on the lowest point of 2018. Traders were disappointed with this outcome, since there was a lot of hope that ETF is just behind the corner. Basically, everyone who hopped on the crypto train hoped to open up their trustee Lambo catalog and set up a meeting with a real estate manager already.
Which is understandable, since the first bitcoin ETF proposal rejection was imminent, back then it was nothing but a novelty, that a lot of people were rightfully calling a “digital tulip craze all over again”, and they were somewhat right - speculations and fraud were going rampant.
But this time people were rightfully disappointed, since now it is evident that crypto is here to stay and it’s going to be a serious financial instrument in the future, or even a “death of fiat” as Robert Kiyosaki says. But we at the Bitnewstoday won’t go into that field. Instead, we will give you an analysis of why ETF is stuck in limbo for months.
First one is simple and understandable. Bitcoin does lack insurance and protection of any sorts for investors. From the regulator’s point - this is a serious issue, as the questions like “Who is responsible for the hacked wallets?” or “What can be done with the market manipulation?” do not have a definite answer since some of those just do not have an answer yet (or maybe do not have an answer at all), and their position on the matter is understandable.
But here is the catch - Bitcoin is a part of a "new economy." And because of this, it is not going to work with the rules of the “old world” economy. Because of time after time most predictions and prognosis that. SImply put - SEC wants to see a horse powered carriage, and they are not sure what to think when they see a sports car.
But this situation is slowly changing. Hester Peirce, one of the SEC commissioners, stood up and openly dissented when commission rejected Winklevoss brothers ETF. And she is not alone in this “camp”. Former SEC chairman Christopher Cox, who is notorious for his pro-digital stance, does not see anything inherently wrong in crypto.
“I believe the SEC is just being cautious in its approach to cyprtocurrency. With the latest news that ice is launching there crypto platform (Bakkt), I believe it's only a mater of time before the SEC approves a Bitcoin ETF. There deciding on 9 ETF's within the next 2 months”, - said Scott Gettleman, professional cryptotrader from Top Shelf Trading Company located in New-York, in his exclusive commentary for the Bitnewstoday.com - ”Momentum is building as is the public's appetite. If one of these ETF's can make its custodial practices industry standard and have proper insurance against theft, I believe they will get approval within a year. And that's the change needed to get approval. SEC has to be cautious, they would look foolish if they gave blessing to an ETF only to have it hacked and coins stolen. Better to wait for the right solution than rush to be first to market”, - concluded Gettleman.
As we can see - opinions about this whole situation are very different. Some people stay optimistic and believe that ETF is coming this very year. Realists doubt that and think that we shouldn’t expect ETF before 2019. Pessimists doubt that ETF will ever come to crypto in its current form.
And some parts of the cryptoverse doubt that ETF is a must, just like Dan Morehead from Panthera capital, who compares bitcoin with the copper, rare mineral that was on earth for eons and got approved for ETF only in 2012 and did just fine before that moment.