Since 2017, the SEC has canceled at least three Bitcoin ETF applications (including the Winklevoss twins twice) from different groups, citing specific reasons for such failures. This did not stop the ascent of new applications. Just last month, the three groups that were rejected earlier (CBOE, VanEcK and SolidX) returned with revised applications.
This latest development has once again caused an influx of opinions and predictions of how much an ETF is needed for Bitcoin and the possible consequences of any form of approval. While some experts do not see the need to use ETF for Bitcoin, others believe that this will be the main catalyst for the next big step and the possible creation of cryptocurrency in the mainstream.
Here are the opinions of several experts who shared with CCN how ETF will affect the development of Bitcoin.
Interesting idea
Netcoins founder Michael Vogel sees the possibility of using Bitcoin ETFs as an “interesting idea,” although he does not believe this is critical to the long-term success of Bitcoin.
According to Vogel, many see ETF endorsement as another step forward to legitimize Bitcoin in the eyes of Wall Street and traditional finance, because it will eventually put Bitcoin (as a trading tool) in the hands of ordinary traders. However, he believes that this also means a significant step forward in terms of the level of comfort that regulators will create around cryptocurrency, given the extreme indecision around past ETF applications.
“The ETF is likely to have a significant impact on Bitcoin prices, and not just on trading volume, simply because of the volume of Bitcoin that it will remove from the market for liquid trading (since BTC will need to keep ETF permanently).”
Absolutely not needed
Another expert, the founder of Trezor and business strategist Alena Vranova shared her opinion about the developing event.
According to Vranova, there is no need for an ETF to develop Bitcoin. However, she notes that this will open the door to a significant mass of new investors, who believe that some regulatory statement makes Bitcoin legal. Vranova points out that in the short term, Bitcoin will receive positive advertising, and the price is likely to grow rapidly, even if she had previously advised breeders to ensure the safety of their coins.
She said:
“Everyone who wants to go, please make sure that your Bitcoins are in a safe place from hacking hackers, because their interest is also increasing. I would recommend to abandon any custodial service, install some proven hardware wallets (TREZOR or Ledger), create a non-custodial multisession wallet (for example, CASA) and read the book by Pamela Morgan on the inheritance of cryptocurrency assets. ”
Nothing spectacular
For Dan Coe, a CryptoCrest partner, an ETF is simply any fund (mutual, hedged, whatever) traded on an exchange.
He explains that ETFs mainly trade in SEC or CFTC-regulated assets, and now many or most cryptocurrencies are neither. Consequently, the fund trading in them will have to register their shares of shareholders in the fund as securities, but the assets being traded are not regulated. This can add to the SEC restraint to allow such a thing.
Coe continued, noting that with regard to the importance of ETFs for Bitcoins, it would indeed be a good way for funds that use large brokerage dealers to sell membership interests in any type of fund they have.
Thus, it will not be an ETF, but the funds themselves could acquire their membership interests through Vanguard or similar.
“At the end of the day, that’s how it works—the difference is that they aren’t listed on the exchange,” Coe concluded.
While the ecosystem is awaiting a new SEC appointment made by the SEC when deciding on ETF applications, investors and other Bitcoin holders will continue to consider both the long-term and the short-term consequences that may arise. Regardless of the results, raising awareness and interest in Bitcoin is becoming more defined. In addition, with the different development of the entire blockchain ecosystem, increasing reliability and industrial stability is becoming increasingly apparent.