- Many thought 2019 would be the year when bitcoin ETFs would finally get approval from the securities and exchange commission.
- This point comes around Bitcoin ETFs which essentially cracks down to the whole idea of bitcoin, decentralisation.
Despite many analysts believing that the launch of a bitcoin ETF would bring in not only institutional investment but further mainstream adoption from the masses, not everyone is excited for an ETF getting the green light. The co-founder of Toroso Investments, Michael Venuto said the following:
“If there was a crypto exchange-traded fund [ETF], I would buy it. I would buy it for my clients. But I don’t think it is good for crypto.”
Following the 2017 bull run that saw the leading cryptocurrency rise to highs of $20,000, many thought 2019 would be the year when bitcoin ETFs would finally get approval from the securities and exchange commission in the United States. Of course, now it is February 2020, and we still don’t seem to be getting any closer to the ever so tempting approval.
This point comes around Bitcoin ETFs which essentially cracks down to the whole idea of bitcoin, decentralisation. With a Bitcoin ETF in place, investors would not necessarily hold any of the flagship currency. Instead, they would potentially own shares of bitcoin which would be owned by a custodian. Of course this defies Satoshi Nakamoto’s whole idea for bitcoin in 2008.
Venuto said the following in a recent podcast:
“Crypto’s, part of the original mission, is to get rid of the trusted third party. That is part of why we want a decentralized network. That said, we have this whole group of investors that are waiting to get in until the trusted third party of an ETF and the SEC says it is okay. “
Bitcoin ETFs are a very drawn-out process, to say the least. Many people are losing hope (if not already lost hope) on whether they will get approved by the regulators in the United States. Of course the argument is coming out that ETFs may not be the best idea after all. The biggest argument being that it would give bitcoin holders the ability to essentially cash out to traditional funds.
It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!