The demand for establishing a bitcoin exchange traded-fund (ETF) is continously on the rise in the crypto world. All eyes in the crypto market are focused towards this event, especially the investor. As of yet, the regulatory body in charge of approving a crypto-linked ETF, the United States Securities and Exchange Commission, has not been very approving of such an ETF, the major concerns being liquidity, valuation, custody, arbitrage, manipulation and other risks associated with the market. But are we going to see an ETF get established this year? Crypto analyst and investor Eric Thies shares his views about the situation.
Talking to BlockPublisher about seeing a crypto-linked ETF this year, Eric stated:
I wouldn’t be surprised if its established this year. The SEC is delaying the inevitable / waiting for a right time to implement this ETF simply because the demand is there. Should it be denied this year, I’m sure there’s already a line for the next 5 years to apply for one.
Eric is of the view that the SEC is waiting for an appropriate time to approve such a proposal. It is stated by many experts of the game that the regulatory body needs time to assess the new asset class. The market is still growing and has a plethora of problems attached with it like volatility, manipulation etc. Unless these issues are resolved, the chances of seeing a crypto-linked ETF are still low this year. But despite, there is still a lot of time left for such an event to happen.
Talking about the effects that a crypto-linked ETF is going to make in the market, Eric suggested that as of now, an ETF will not necessarily define the future of the market. But as we move into the future, it will surely help define the new market leader. He stated:
In terms of the ‘now’… it is my belief that the ETF doesn’t necessarily decide the future of the market, however it decides the role that BTC has in it. Alts and projects continue to grow every day. There’s demand. At some point, BTC will come to a point where it will either continue to be the market leader, or a new king comes to the thrown. An approval or denial of the ETF could possibly be that decision point.
In the present, an approval and disapproval of bitcoin ETF might not matter to the magnitude to which it will matter moving into the future.
An ETF will play a major role in deciding the direction and growth of the market as a whole. With such a framework in place, more and more institutional investors will come pouring in the money which is kept on sidelines as of yet. Acceptance among the general public is also expected to increase as a result of an ETF. A crucial step indeed, but it seems that the regulatory body still needs time to analyze this market of cryptos before we see such an outcome.