Bitwise Asset Management CEO says hes still positive about the prospects of United States regulators approving a Bitcoin exchange-traded fund.
Bitwise Asset Management CEO says a huge amount of progress has been made in the crypto space that should assuage SECs concerns
The CEO of crypto index fund provider Bitwise Asset Management says hes still positive about the prospect of United States regulators approving a crypto exchange-traded fund (ETF).
CEO Hunter Horsley made his remarks during aninterviewtogether with Bitwises global head of research Matt Hougan for Bloomberg UK on Aug. 15.
Asreported, Bitwise filed its latest ETF application with theUnited StatesSecurities and Exchange Commission (SEC) in January of this year.
This week, the regulatorpostponedits decision on the proposal together with two other crypto ETF proposals with the deadline for the ruling currently set for Oct. 13.
Notwithstanding these developments, Horsley remained positive, noting that the SEC has been relatively open about the reasons behind its delay and articulated the nature of its concerns.
Even though Bitwise has made multiple rounds of different ETF applications, he noted there has been a huge amount of progress in the last twelve months.
Horsleys perspective was echoed by Hougan, who took stock of significant recent developments in the crypto sector such as the entrance of trading firm Susquehanna, improved arbitrage and new spreads.
He also noted that crypto custodians now have access to extensive insurance policies from Llyods of London and that the market more broadly is maturing. A large portion of the SECs concerns have thus been solved, he claimed.
While several crypto ETF and similar investment vehicles already exist in Europe, most of the expectation globally rests on the U.S. greenlighting such products. Hougan weighed in on what he believes will be the likely impact of approval:
A key aspect to a Bitcoin ETF in the U.S. is that it unlocks the financial advisor marketplace. So far crypto has focused mostly on retail investors […] or institutional investors […] Half the money in the U.S. is managed by financial advisors, and right now its very difficult for them to access that market.
Hougan compared this prospective opening up of major new areas of wealth to the introduction of ETFs for gold and private banks.
With the SEC continuing to delay over multiple ETF proposals, many in the community await their prospective launch as a potentialholy grailthat would herald the widespread adoption of cryptocurrencies as a regulated and passive investment instrument.
Bitwises own application with the SECproposesa crypto ETF tracking the Bitwise HOLD 10 Private Index Fund, a basket of ten cryptocurrencies.
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