Regulations have basically caused a bloodbath in the crypto market. However, things still don’t look ripe for the crypto market. However, this doesn’t stop the crypto industry to attempt to go after legitimacy. Institutional investors still haven’t entered the market fully.
One might argue that the crypto industry is moving towards the right direction. You have Goldman Sachs that has somewhat dabbled in cryptos. Also, you have the likes of ICE teaming up with Microsoft and Starbucks.
But the thing that the crypto market is looking forward to having recently is a Bitcoin ETF. Vitalik Buterin, who is the co-founder of Ethereum, thinks that the industry is putting too much effort on Bitcoin ETF instead of adoption. However, he admitted that it can help the crypto market regain its value.
Many believe that a Bitcoin ETF will make it easier for institutional investors to get involved. Unfortunately, the US Securities and Exchange Commission has rejected a number of Bitcoin ETF applications including the second Bitcoin ETF application submitted by both Cameron and Tyler Winklevoss. The agency noted price manipulation as the reason for its rejection.
By the end of the month, the agency is set to make a decision regarding the Bitcoin ETF application submitted by Solid X and VanEck. The good thing is that there is a pro-crypto commissioner in the agency now. US SEC commissioner Hester Peirce thinks that the government shouldn’t limit the emergence of new products in the crypto market just because of the perceived weakness of Bitcoin.
She explained that “The Commission should not default to a demand that the crypto markets be subject to comprehensive government regulation as a precondition to allowing products linked to those markets to be traded in markets that we regulate”.
She addressed the reason why the agency rejected the Winklevoss Bitcoin ETF application was due to the SEC’s belief that the Bitcoin markets have flaws that relate to infrastructure. She explained her issues regarding the decision in a letter of dissent. Her point is that there should be no connection to the SEC’s evaluation of Bitcoin ETF applications and cryptocurrencies such as Bitcoin.
She also stated that “The Commission’s order included an assurance that the ‘disapproval does not rest on an evaluation of whether bitcoin or blockchain technology more generally, has utility or value as an innovation or an investment.’ The order, however, seemed to do almost that. It focused on the alleged flaws with bitcoin markets, rather than on whether the exchange proposing to trade shares of the trust had taken steps to ensure the orderly trading of those shares”.
Now that Peirce has a crypto stance and is very vocal about the possibility of a Bitcoin ETF, are we going to see a Bitcoin ETF by the end of the month? Is Peirce enough to sway other commissioners? There are those saying that it is a possible scenario that the SEC will delay the decision yet again. And therefore, we might be seeing a Bitcoin ETF next year.
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