Gemini, a well-renowned digital currency exchange, recently launched its US dollar backed stablecoin named the Gemini dollar. While some people are of the view that this move will surely help the acceptance of cryptocurrencies in the general public, others are looking forward towards different developments for large scale public acceptance.
Talking to BlockPublisher regarding Gemini dollar increasing public acceptance of cryptos, one of the well-renowned personalities in the blockchain world, Thomas Power, who is also the board member of 9 Spokes, stated:
Yes “a little” for sure but without SEC ETF BTC approval, crypto won’t ever be fully trusted.
Thomas is of the view that although Gemini dollar will increase the public acceptance to some extent, the real development that needs to be seen is the establishment of a bitcoin exchange traded-fund (ETF) by the United Stated Securities and Exchange Commission (SEC). So far, the SEC has not been very approving of a crypto-linked exchange-traded fund.
Regarding the establishment of a crypto-linked ETF, various experts have pretty much the similar opinion that the SEC still needs time to assess the new asset class. There are a lot shortcomings that are associated with this nascent market as of now. As stated by the SEC, the issues of valuation, liquidity, custody, arbitrage and potential manipulation and other risks associated with the market are of major concern. Also, regarding the issue of manipulation, the SEC stated:
The Commission has also discussed concerns relating to the risk of fraud and manipulation in cryptocurrency markets in orders denying exchange proposals to list the shares of commodity trusts that would hold cryptocurrency. In addition, a number of recent media reports have highlighted a range of possible vectors for potential manipulation of cryptocurrency markets. Although some funds may propose to hold cryptocurrency-related products, rather than cryptocurrencies, the pricing, volatility and resiliency of these derivative markets generally would be expected to be strongly influenced by the underlying markets.
Although the possibility of an ETF getting established this year seems bleak, David Gokhshtein is of the view that there still might be a chance to see it happen this year. Talking to BlockPublisher, David stated that:
We might get an ETF passed this year. Elad Roisman, who’s been named the new SEC commissioner, is pro-crypto and might want to make a name for himself. What better way then getting a BTC ETF passed?
Gemini seems to be just a digital representation of the U.S. dollar. Although it might increase acceptance of digital currencies to a certain extent, it seems that major developments still need to be made in order to witness a widespread acceptance of cryptocurrencies.