The Bitcoin market took a tumble about a week ago when news was announced that the Bitcoin ETF submitted by the Winklevoss twins, founders of the Gemini crypto exchange, was rejected for the second time.
The hope among crypto investors and the Winklevoss Twins was that this would have been the first crypto ETF on a regulated exchange. But, they were shot down… again.
The proposal, submitted in June, was rejected in a 3–1 vote by the commission last week.
Reasons for the denial were that the proposed rule change submitted with the argument that Bitcoin markets are “uniquely resistant to manipulation.” The commission went on to argue issues of fraud and investor protection for the crypto space.
Valuable information that was released by the commission was that this disapproval doesn’t mean that the SEC doesn’t believe that Bitcoin and blockchain tech have merit and value as an investment or as innovation.
It was ultimately disapproved because the SEC’s mission is to prevent fraud, manipulative actions, and to protect investors. Their belief is that, right now, the crypto market is a largely unregulated offshore financial market.
“Despite today’s ruling, we look forward to continuing to work with the SEC and remain deeply committed to bringing a regulated bitcoin ETF to market and building the future of money,” Cameron Winklevoss, co-founder and President of Gemini said regarding the matter.
Hope for SEC-Approval?
Crescent Crypto’s CEO and former Goldman Sachs executive, Ali Hassan, claims that an SEC-approved Bitcoin ETF could be possible within the next 18 months!
That’s a pretty big claim!
His proposal to acknowledge the SEC’s investor protection concerns includes passive investments that will “actually increase the participation in the market.”
Hassan named VanEck as an exciting project within the Bitcoin ETF space. This project has tried to address regulators twice in regards to inflation of share values and is working on a third attempt. VanEck is available to select investors since each share is equal to 25 Bitcoins, which is equal to a little less than $200,000 at the time of this writing.
What about volatility, security, and crypto prices?
SEC Chief, Jay Clayton, voiced his intent to stop any crypto ETFs because of volatility, security concerns, and lack of proper custodianship.
Hassan has commented on this view by stating that none of his investors have had to deal with those problems in his index fund. Volatility has been reduced by “holding 20 coins with slightly different levels of correlation and using a 90-day trailing average market cap.”
As far as security concerns, risk is avoided by keeping all of the crypto assets in cold storage in New Jersey, USA.
Hassan believes that crypto will be going to the moon soon, but we shall see what happens with that in the future.
I would love to hear your thoughts on whether or not we will see an SEC-approved Bitcoin ETF in the near future? Would that improve crypto prices or not have an impact? I have read viewpoints from both sides so I want to have a conversation!
Thanks for reading,