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Bitcoin [BTC] ETF to passed by the end of the 2018 is “very unlikely”, says ex-ETF builder




Bitcoin [BTC] ETF to passed by the end of the 2018 is "very unlikely", says ex-ETF builder
Source: Unsplash

During an interview with CNBC Crypto Trader, Mark Brady, an ex-ETF builder of Blackrock, stated that the cryptocurrency community would probably not see a Bitcoin [BTC] ETF by the end of this year. Brady also said that from the standpoint of mass retail acceptance, an ETF is very important to the cryptocurrency ecosystem.

This is because an exchange-traded fund is basically a container which allows the customers to put capital into different underlying assets. These assets may be difficult for an average retail investor to get exposure to, stated Brady.

The ex-ETF builder continued to say that a “good example” for such exposure would be fixed income investments. According to him, a fixed income is traded in normally large notional values, while an ETF allows for a retail investor to get exposure to cryptocurrency on a much smaller size.

He went on to state that a Bitcoin ETF wouldn’t be the reason for the institutional investors to invest in cryptocurrency, as there are more systematic pieces in the ecosystem which need to be in place. This includes solutions such as custody before true institutional investors would start participating, stated Brady. Notably, the beginnings of such solutions have already been seen in technologies such as Coinbase Custody.

Mark said:

“I don’t really foresee any Bitcoin market being regulated by the year-end and the fragmentation of liquidity means that you are unlikely to see one market have large dominance over the overall trading volume of Bitcoin.”

Furthermore, he spoke about his perspective on the dissent published by the U.S Securities and Exchange Commissioner, Hester Peirce. Brady stated that there is  infighting clearly occurring in the SEC regarding the approval of the Bitcoin ETF and that Peirce wrote a very nice piece outlining the community’s opinion. He said that it is “very unlikely” to get a Bitcoin ETF by the end of 2018. He further stated:

“But I think broadly speaking when you are talking about ETFs, you talk about the ecosystem and I have mentioned before that lack of qualified custodian in the ecosystem and I think until there is a regulated exchange with proper governance, there is a variety of custodian solutions. You’re not going to see an ETF approved by them.”

Hsan Asum, a Youtuber commented:

“ETF denied is a loss for US, every country who accepted crypto will flourish and US will be too late catch up.”

T2, another Youtuber commented:

“BTC is decentralized. BTC doesnt need ETFs. ETF will only lead BTC to centralization. Alots of people just dont get it”

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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.


SEC delays VanEck Bitcoin ETF decision days after delaying Bitwise proposed rule change





SEC delays VanEck Bitcoin ETF decision days after delaying the Bitwise proposed rule change
Source: Unsplash

The Securities and Commission Exchange [SEC] has yet again delayed another Bitcoin ETF. This time around, the commission has decided to delay the VanEck Soldix Bitcoin ETF, one of the most awaited exchange-traded funds in the cryptocurrency community.

In the document released today, the exchange has asked for more comments on the proposed rule change and has also asked for further information on queries related to the exchange-traded fund. The commission stated that it has received 25 comments on the proposed rule change so far.  It stated,

“On January 30, 2019, Cboe BZX Exchange, Inc. […] filed with the Securities and Exchange Commission, […] a proposed rule change to list and trade shares of SolidX Bitcoin Shares issued by the VanEck SolidX Bitcoin Trust […] The proposed rule change was published for comment in the Federal Register on February 20, 2019.”

It further stated

“On March 29, 2019, pursuant to Section 19(b)(2) of the Act, the commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.”

Notably, the main concerns of the commission continue to be market manipulation and the measure taken by the platform to protect its investors. The commission is currently seeking comments on 14 queries pertaining to the VanEck Bitcoin ETF.

This includes the views of the ‘commenters’ on whether the exchange has entered “into a surveillance-sharing agreement with a regulated market of significant size related to bitcoin?”, the relationship between the Bitcoin futures markets and the Bitcoin spot market, with the focus being price formation, the relationship between the Bitcoin futures market and the proposed Bitcoin ETF, and the commenters’ views “of the Exchange’s assertions that bitcoin is arguably less susceptible to manipulation than other commodities that underlie ETPs”.

Gabor Gurbacs, Director of Digital Assets Strategy with VanEck said on Twitter,

“The VanEck SolidX #Bitcoin #ETF decision has been postponed by the SEC. We continue the hard work towards better-regulated, safer and more liquid digital assets markets. Bitcoin is too big to ignore. Vires in numeris!”

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