The blockchain technology and more specifically the cryptocurrency sector has been on the favorable side of the market dues to its general acceptance, this, fortunately, might translate into approval of the Bitcoin Exchange-Traded Funds (the ETF) by the Security Exchange Commission.
While speaking to CNBC earlier this month, the CEO of Fatfish Internet Group, Kin-Wai Lau, described this as a “second wave rally” which implies that this phase of the Cryptocurrencies is that which is championed by the entry, investment, and adoption of conglomerates. He also opined that though this is a positive indication for people with interest but the likelihood of the SEC approving the Exchange-traded funds (ETF) is a ” who bells the cat” situation as it is hinged on what institution will champion this course. He noted that:
“I think it’s a matter of time before we see the SEC approve an ETF. It’s just a matter of which organisation will be able to come out with comprehensive tools in terms of monitoring, surveillance, and ability to liquidity. There is a range of tools that need to be equipped, but it’s also the readiness of the market. We’re not far away, maybe a couple of months away from the market accepting an ETF product. I think that’s what the SEC will be looking at.”
However, there were inquiries on how to speculate on the upward movement and downward slope of the bitcoin price. He therefore added that the ETF and other abstract instrument have less impact as ” adoption” which is a principal determinant in the change of price saying:
“Adoption is what is driving the demand on ground. It’s being used widely in many countries, and a lot of jurisdictions are starting to regulate it and approach it with a cautious but optimistic approach. That’s generally a couple of factors that will affect regulatory interest. It is geared up for a rally toward year end.”
One could readily ask how a Bitcoin ETF changes things then or, what does the approval of the ETF add to the cryptocurrency sector. The Bitcoin ETF will not only capture the minds of investors but will also further signal great acceptance of the cryptocurrency as an instrument of exchange thereby bringing in more investors.
It is exigent to have a quick flashback to July 1, 2013, when ETF was first presented to SEC but was rejected on the 13th day of March 2017 which resulted into a significant setback to the cryptocurrency sector as Bitcoin price experienced 25% decrease in price although the price tripled in the following months.
It was not only the Fatfish Internet Group CEO that predicted the approval as the Crescent Crypto CEO, Ali Hassan, even went further with his prediction to speculate the time frame of this approval which is a space of a year from this moment.
Also, institutions such as Vaneck has also shown interest in this course as they have voiced out through a letter on the SEC website expressing their favorable concern for the approval of the Bitcoin ETF.