Bitcoin Exchange-Traded Funds Hope Returns After SEC Verdict Nears

Bitcoin exchange-traded funds application cosigned by Bitwise Investments and NYSE Arca is expecting a verdict from the Securities and Exchange Commission. The decision brings hope for other BTC ETFs since, after the Bakkt launch, these futures underwhelmed the crypto investors as we read in the previous Bitcoin news.

This week, the US SEC will issue the verdict for the bitcoin exchange-traded funds for the two companies but there are skeptics who believe nothing will happen. Bitwise is still confident that the product has the potential to appease the SEC. if you followed the updates, you have already noticed that the SEC is not the biggest fan of Bitcoin ETFs. All of the applications that were filed with the SEC have been denied. Bitwise, on the other hand, aims to break the bad luck. The managing director and head of research at Bitwise Matt Hougan stated that his company is ‘’closer than we’ve ever been to get a Bitcoin ETF approved. He stated:

 “Two years ago, there were no regulated, insured custodians in the bitcoin market. Today, … there are big names like Fidelity and Coinbase [with] hundreds of millions of dollars of insurance from firms like Lloyd’s of London … Today, we have $200-plus million in volume and regulated futures every day.”

It still remains to be seen if these developments will improve the infrastructure of the Bitcoin market and how will they convince the SEC. Aside from the Bitwise application, the SEC should issue a verdict regarding a Bitcoin Trust by Wilshire Phoenix and the financial regulator has not a long time left to make a decision on this product. Bitwise is more confident about the BTC ETF application but the others are not. The SEC chairman Jay Clayton argued that there is still work to be done for this class of crypto products. Clayton cast doubt on the nature of Bitcoin’s market saying that BTC trades on largely unregulated markets and Bitcoin custodial offerings might not be ready for full institutional use.

The chief executive officer of Genesis Trading Michal Moro stated that he is not as confident that Bitcoin ETFs will be allowed in the United States anytime soon. Moro explained his concerns over the existence of market manipulation in Bitcoin markets saying a huge part of the industry investors is ok with it. As for the Bitcoin price, the crypto tumbled off in September and shed more than 20 percent of its value in less than three days as we mentioned in the crypto news analysis.