The demands for a crypto-linked exchange-traded fund (ETF) are increasing with each passing day in the crypto financial industry. Institutional interest is largely driving this demand. But are we going to see an ETF get established by this year? The founder of Morgan Creek Digital Jason A. Williams shares his views.
Talking to BlockPublisher, Jason stated:
We may have an ETF by EOY. If that happens we will definitely get a bump in crypto price. More than that, we will see custody solved with products like Vault (coinbase) and announcements of institutional investors allocating money to this asset class.
As suggested by Jason, an ETF will definitely help the digital asset class. Because of an ETF, acceptance among the general public is also expected to increase. Institutional investment that has been sitting on the sidelines will also start to pour into the market as a result of a crypto-linked ETF. Owing to this, the market is also expected to stabilize. As suggested by Jason, although an ETF will help lift the entire market up, bitcoin will be the real big winner.
This will lift the whole market but BTC will be the big winner.
Bitcoin is already dominating the cryptocurrency market in terms of capitalization and it is likely that it will be the one dominating the market after such an official development is made in the form of an ETF.
As of yet, a crypto-linked exchange-traded fund (ETF) has not been approved by the regulatory body in charge, the United States Securities and Exchange Commission (SEC). Issues of liquidity, custody, arbitrage, volatility, manipulation and other risks associated with the crypto market have been raised by the commission. Unless these issues are resolved, the chances of an ETF getting established are relatively low this year.
Different experts across the financial space are suggesting different predictions regarding the time frame during which one might see an ETF getting established. Some suggest that the possibility of it getting established this year is still there, while the majority believes that 2019 is the year when the market is going to see an ETF getting approved by the SEC.
One of the major hurdles that are placed in the way of an ETF getting approved is manipulation. Big whales in the crypto space allegedly shift the tide of the market in their direction to gain benefits. Prevalence of such activities decrease the trust that the general public and investors have in the crypto space.
SEC’s major aim is the protection of the investors in the game. The proposals that have been proposed as of yet have not been able to ensure a complete security fabric for the investors. Illegal and manipulative activities are still prevailing in the market at large.
Once these issues linked with the crypto market are handled appropriately, there are strong chances that the ETF will get an approval as certain forces within the SEC itself are rooting in its favor.