The meeting between Bitcoin (BTC) and the US Securities and Exchange Commission regarding the Bitcoin Exchange Trade Fund (ETF) is a very hot topic. ETF is a highly anticipated product, with a lot of people in the Bitcoin community eagerly awaiting ETF, which will be publicly traded. Despite the excitement surrounding ETF, there are some people in the community that is not convinced with ETF, saying that it will have minimal effect on Bitcoin.
Mati Greenspan, working at eToro as a senior market analyst is one of those people. He said in an interview with AMBCrypto:
The idea of the SEC approving a Bitcoin ETF is basically saying that the government is going to approve something that the banks made. I don’t think Bitcoin cares very much about that.
Greenspan talked about the Bitwise Asset Management report that was forwarded to the SEC, saying that it addressed a couple of crucial points.
First of all, it highlighted “market manipulation” as well as “wash trading,” something which the members of the SEC were very vocal about. A month ago, Jay Clayton, chairman of the SEC mentioned that he was hesitant about ETF due to the reasons stated above.
Furthermore, the firm also revealed a brand new approach to compute the Net Asset Value (NAV) based on the statistics of ten cryptocurrency exchanges covering “real volumes.”
Because of this statement, as well as the two crucial points pointed out by Bitwise, Greenspan further stated that the proposition has “a good shot” of gaining SEC’s approval. He also mentioned the changes in the members of the SEC as another reason why confidence about cryptocurrencies was high.
Greenspan was convinced that the next hearing for ETF will be postponed once more by the SEC even though it is already scheduled on May 19, 2019. His views were also shared by Jake Chervinsky, another member of the securities litigation team working at Kobre & Kim, who made a statement last March that:
“The SEC’s *final* deadlines will be October 13 and October 18, 2019.”
SEC’s approval of the ETF will enable “larger crypto investments” which will allow hedge fund managers to penetrate the Bitcoin market. However, Greenspan stated that it will only be used as an investment vehicle by hedge funds managers, as they will only get into ETF because of its unpredictable prices.
He also stated that the authorization or rejection of Bitcoin ETF will result in a major effect in BTC prices, although “only for a short period of time.”
Greenspan finally stated that Bitcoin ETF will provide liquidity to investors, but are not structured around “actual Bitcoins.” It is just an additional way to invest in Bitcoin. He referred to the service offered by Bakkt as “incredibly positive,” particularly their plan of having a credit card associated with a “Bitcoin account.”
Greenspan concluded that these projects will assist in the “adoption” of Bitcoin, and Wall Street can expect a trillion dollar growth in volume. However, the ultimate objective of Bitcoin is to keep being a commonly-used, worldwide, international money that is immune to censoring, and this is not going to change.