The time has finally come — the U.S. Securities and Exchange Commission (SEC) has finally approved the first Bitcoin ETF — albeit for futures and not a spot traded fund.
Some say this is good news, especially from a mainstream acceptance perspective. But others disagree, specifying a shift of power to Wall Street and the possibility it could trigger a sell-off event.
What’s the hold-up with Bitcoin ETFs?
According to the popular Bitcoin Twitter account @DocumentingBitcoin, financial services providers have been trying to get a Bitcoin ETF approved in the U.S since 2013.
— Documenting Bitcoin (@DocumentingBTC) May 30, 2021
So far, every application has been denied by the regulator. An often-cited reason is the agency’s concern that some crypto exchanges are “cooking the books” with fake spot trading. Therefore a Bitcoin ETF would be hugely manipulated.
However, in the recent past, SEC Commissioner Hester Pierce has gone on record to say this way of thinking is no longer relevant. She expanded by saying that institutional participation has made great strides in establishing this market during the present time.
“So, I think the markets have matured quite a bit.”
Fast forward to late summer, and SEC Chair Gensler began signaling his openness to the idea of a Bitcoin ETF. But under the proviso of tough compliance requirements.
Today, Bloomberg said the SEC is likely to greenlight Bitcoin ETF trading as early as next week.
Buy the rumor, sell the news
If true, a U.S Bitcoin EFT would be defining moment in the history of cryptocurrency.
But on-chain analyst Willy Woo isn’t so keen on the idea.