A cryptocurrency analyst is claiming that the days of a bitcoin ETF are numbered.
A Bitcoin ETF May Not Arrive for a While
Data Trek Research co-founder Nick Colas explained in an interview that the Securities and Exchange Commission (SEC) is being very hard on bitcoin exchange-traded funds (ETFs), and that people will likely see a bank-issued central cryptocurrency before they witness the days of a bitcoin ETF.
Last January, Colas explained that the odds of witnessing an ETF based on a cryptocurrency come to life in the year 2020 were approximately ten percent. In a follow-up interview, he stated:
You’ll see a central bank cryptocurrency before you’ll see a bitcoin ETF.
The SEC has not been particularly kind to crypto ETFs in the past. Some of the most notable examples have come by way of Bitwise and Van Eck, which was doing business with a joint enterprise known as Solid X. Solid X and Van Eck initially tried to garner approval on their ETF three years ago in March of 2017. Despite a quick rejection, the companies did not allow this failure to get in their way.
They ultimately tried two more times before finally getting the attention of the SEC. The organization decided that it would post the application for public comment while seeking the knowledge of crypto experts everywhere to decide if this was indeed something that could come to fruition. The proposal received very positive feedback.
The SEC then claimed that it would decide about the legitimacy of Van Eck’s application, but this was marred by more than a year’s worth of delays and inhibitions. Tired of waiting, Van Eck stepped in and pulled the plug on its own proposal in late 2019.
Following this move, it was Bitwise that became crypto enthusiasts’ main hope for a bitcoin ETF. Their hopes and dreams were dashed on the sidewalk when the SEC unceremoniously rejected the company’s proposal, leaving the notion of a bitcoin ETF scattered in the winds.
Wilshire Phoenix also released a bitcoin ETF proposal to the SEC, but was recently turned down. Still, however, analysts claim that many ventures are likely to persist, and that eventually one day, some company somewhere will have its crypto ETF approved.
This Isn’t Over
Chris Hempstead – director of institutional business development at Index IQ – explained to CNBC that Wilshire Phoenix would likely hit back following its rejection:
I doubt very heavily that it’s going to be the last straw. I think everyone will continue to listen to the feedback and the notes from the SEC, what their comments are, and they will continue to address it… They’ll probably take another look at it and have different kinds of considerations. I don’t think it’s the last straw, but I don’t predict any significant changes from the SEC’s decision in the immediate future.
Source: Live Bitcoin News