Following the recent rejection of the Wilshire Phoenix Bitcoin exchange-traded fund (ETF) by the U.S Securities and Exchange Commission (SEC), investment firms in a broadcast debated the possibility of Bitcoin ETF SEC approval.
Analysts are still yet to be convinced that soon enough, a Bitcoin ETF SEC approval would occur.
Wilshire Phoenix, a New York-based asset management firm after over five attempts, still had its application for a proposed U.S. BTC and Treasury Investment Trust rejected by SEC. The regulators did not endorse Phoenix proposal because of concerns over manipulation of the BTC market and a way to protect patrons.
Bitcoin ETF SEC approval imminent on demand
Chris Hempstead, a director at IndexIQ, believes that Bitcoin ETF will be approved if people continue to ask for the product.
Hempstead said that he believes more proposals for Bitcoin ETF SEC approval would come, and firms will continue to act on SEC’s responses to be better placed to get approval.
Even as Hempstead concurs that SEC will eventually approve Bitcoin ETF, he does not see any approval coming soon. The director said that when demand alongside investors’ demands gets to a certain point, SEC will begin to rethink its current position.
Co-founder at DataTrek Research, Nick Colas, however, is skeptical about SEC giving any approval on Bitcoin ETF soon. He believes that before an endorsement is signed, a central bank digital currency (CBDC) must be in place.
Role of stablecoin in the Bitcoin ETF SEC approval
Hempstead, in his prediction, states that stablecoin and other crypto coins will be regulated as the crypto space continues to grow, and people begin to be enlightened as to how distributed ledger technology (DLT) works.
He said maybe part of what SEC is waiting for is more structure into the complexity of crypto transactions. He said perhaps, SEC needs to see more risk diversification, and more understanding of how crypto products work and not only BTC.
Dan Wiener, however, believes adopting blockchain tech is more significant, unlike crypto. He believes there is no need for BTC as platforms like Venmo are being used far more than cryptos.
He underplayed the need for BTC, saying he is not a drug dealer and not bothered about moving money. He said there are several ways the money could be transferred and no need to hide the identities of people moving money.
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