The regulatory status of ETFs (exchange-traded funds) for Bitcoin (BTC) is still up in the air, and concerns regarding this subject have been taken into this year. On one hand, a lot of analysts are saying that this will be the year where digital currency-backed exchange-traded funds will be given a green light. Whereas, there are skeptics out there that believe it is too early for the digital currency market to handle such an investment channel.
Some analysts said they don’t expect exchange-traded funds of Bitcoin (BTC) to hit the mainstream in the next couple of months. The Chief Strategy Officer (CSO) at CoinShares – Meltem Demirors – recently had an interview with NeuNer – a fervent blockchain optimist and founder of OnChain Capital. In the interview, Demirors talked about the current happenings in the industry.
ETF Applications of CBOE, SolidX, and VanEck Will Not Be Approved This Year
During the interview, NeuNer asked Demirors for her thoughts regarding the applications of an exchange-traded fund for Bitcoin (BTC). In response, she said that the BTC ETF applications from CBOE, SolidX, and VanEck will “absolutely not” be the proposals that get the green light this year.
She said that at the moment, the U.S SEC (Securities and Exchange Commission), which is seen as the major obstacle of digital currency, has no upside in giving a green light to a proposal. Rather, she claimed that there is a downside for the financial regulator. She added that the present political climate in America is making the outlook of Bitcoin (BTC) there even worse.
The long-term digital currency enthusiast also said that many forget that SEC and Commodity Future Trading Commission (CFTC) incumbents are appointed, noting that the fintech is still surrounded by political nuances.
Demirors also added that the approval of an exchange-traded product truly back by a digital currency is a quixotic dream. This is because there are some underlying concerns about BTC – including the risk of manipulation, few custody/proper security measures, and lack of market surveillance. The above-mentioned concerns were openly mentioned in several rulings by the SEC about the earlier mentioned class of financial instrument backed by digital currencies.
Arjun Balaji Begged to Differ
Demirors was not the only guest NeuNer had during the interview. The managing partner at Shomei Capital – Arjun Balaji – was also a guest. During the interview, Balaji begged to differ with the options of Demirors. Balaji is the go-to analyst of Block for deep dives on several blockchain topics.
During the interview, he said that he believes there is a better chance that a single asset (most likely BTC), backed exchange-traded fund will go live. Nevertheless, he said that he is skeptical of a multi-asset ETF product, as the US SEC is yet to make a verdict on a lot of leading digital currencies.
Balaji concluded by saying that he expects the team of VanEck to discuss their application. The digital currency team of VanEck is expecting a ruling from the U.S. SEC in the next two months.
Bitcoin (BTC) Price Today – BTC / USD
At the time of writing, Bitcoin (BTC) is trading at $3,630 after a decrease of 1.7 percent over the past 24 hours. The digital currency currently has a market cap of $61.92 billion and its trading volume over the past 24 hours is $2.95 billion.