It ‘Makes Perfect Sense’ for SEC to Take its Time to Consider Bitcoin ETF, According to BitWise, Just Look at how Long it Took Gold!
Hollywood became a veritable hub for financial professionals including investment professionals from all across the world: 2,500 of them in total over the course of this week. The purpose? To go into the substantial topic of discussing Exchange Traded Funds (ETFs).
So while a lot of the talking points revolved around conversations between the big names involves in Wall Street, and centered their talks on traditional vehicles, talking about Bitcoin, along with a range of other crypto and blockchain based products came up.
Taking part in an interview with Bob Pisani of CNBC, one of the major names in the cryptocurrency world, demonstrated a significant amount of optimism when it came to the prospect of new products launching over the course of 2019. With new products being able to gather momentum, this could very well spell out the broader thawing of Bitcoin, pulling it out of the protracted cold spell it has been suffering.
SEC is Starting to Understand The Needs of the Cryptocurrency World
2018 was a truly solid year for the cryptocurrency market, according to the CEO of Bitwise Asset Management, Hunter Horsley. Speaking as one of the guests on the cryptocurrency segment of CNBC, he first made a note of the fact that while the underlying value of tokens fell significantly, in “everything you can wish for,” Horsley commented, significant progress was made, especially when it comes to the market structure as well as the scale of participation from investors and the community.
One of the things he drew reference to is Fidelity’s upcoming custody products which are CME & CBOE’s futures products. These, along with the ongoing co-operation from a number of university endowments, including Facebook along with Samsung, all of which give broader validity to his claims.
He went on to conclude that cryptocurrencies, as a form of asset class, currently operate in, what can be described as their ‘most viable’ state at this moment in time. It’s these arguments that led Horsley on to his next point, where he stated that, while the current market conditions have to be considered, a crypto-linked Exchange Traded Fund may be a good next step to take.
One of the initial positive steps that we are seeing towards such an ETF includes the S-1 application of Bitwise was filed just a few weeks ago, according to the firms C-suite member. According to him, it will be coming under review by the Securities and Exchange Commission, the regulatory body operating within the United States, in March of this year.
Being questioned further by the CNBC host, with reference to the Securities and Exchange Commission, its approach towards ETF applications, as well as the organization’s implicit fears with regards to market manipulation, which is a byproduct of markets based internationally, alongside the matter of custody, Horsley went on to explain with a greater sense of confidence.
Having gained a great deal of experience as a product manager of Facebook and Instagram, he explained that, when it comes to the viewpoint of his company, the SEC has gained ‘a lot more understanding’ when it comes to the current landscape of the cryptocurrency markets.
As Horsley going on to explain to the CNBC host, “the numbers you see on various crypto-related websites [often] aren’t accurate,” the veteran of the space goes on to explain that, the drive from the SEC to obtain a more fleshed out understanding of the blockchain and cryptocurrency industry, along with striving to comprehend the deeper machinations is what really matters for the market.
Horsley goes on to conclude with some comments centered on the role of the SEC on the subject of Bitcoin ETFs on a more positive note, he went on to state that:
“Leverage ETFs took five years. Actively-managed ETFs took six or seven years. Even gold, which has been around for thousands of years and had a product in Australia, took three years from S-1 to initial launch. And I think that the fact that the SEC has taken a couple of years to get comfortable with [cryptocurrencies] makes complete sense. It’s not that they are anti-crypto, but they’re pro-investor.”
Speaking as a seasoned Chief Executive on behalf of Bitwise, he came with his fair share of optimism and hope for the marketplace, which makes for a pleasant one-two punch, especially when considering that these comments came a day after receiving insight from the well-reputed Ric Edelman, who has an incredible pedigree in terms of business experience. Edelman argued the positive consideration and subsequent launch of a Bitcoin ETF is not a matter of if, but when.
Along with a range of reports from various news outlets, Edelman, world-renowned as a guru of the financial services industry, saw his viewpoint go a long way.
Very much like Horsley, a number of investors of the Philadelphia school went on to explain that the regulatory organs that now deliberate over these digital assets area steadily coming to the realization when it comes to the state of the space, as an embryonic and rapidly maturing one.
Bitcoin ETF – What it Means
Responding to a query that was launched at him from the CNBC anchor, Pisani took into consideration that kind of impact that any kind of crypto based fund would have on the ecosystem. Horsley went on to note that, for a large number of investors across the world, an Exchange Traded Fund would represent an ‘enabling moment,’ allowing for anywhere from thousands to even millions to steadily allow themselves to be more intrigued with the notion of making a stronger foray into the Bitcoin world.
Horsley finds himself on the same side with the overarching theory that having some king of public traded cryptocurrency fund would be one of the greatest things to happen within the ecosystem as a whole, but some have made arguments to the contrary.
It was only a day ago that the senior investor and player in the cryptocurrency space, Alec ‘RhythmTrader’ Ziupsyns argued that, should Square, which is a fintech-based company lead by Jack Dorsey, the CEO of Twitter, integrate the Lightning Network, the underlying impact on the market would have one of the most profound positive impacts on the cryptocurrency market than the inclusion of a Bitcoin ETF and Bakkt combined.
While there is a great degree of optimism towards the creation and launch of a Bitcoin ETF, there are those that believe that it won’t go as well as investors and people expect it to. This is according to the investor and professional, Anthony Pompliano discussed the prospect during an interview with BlockTV. The co-founder of Morgan Creek Digital believed that, if Bitcoin was not able to build on the momentum provided by approval from the SEC for its ETF, the underlying psyche of investors would be significantly hurt, damaging the value of the market.
Regardless of how it turns out, the majority within the cryptocurrency market have stuck the notion that when a Bitcoin Exchange Traded Fund finally makes its debut to the market as a whole, the industry will see an unprecedented level of interest from institutional investors and millions of eager consumers. And barriers to mass investment may very well be cleared away with SEC approval.