The SEC has been very active in the sphere of cryptocurrency of late, with various proposals for Bitcoin ETFs going to it for approval. This has raised optimism among many that a consensus may soon be reached and that a Bitcoin ETF may soon be around the corner.
Back in January, a Bitcoin ETF jointly-submitted by VanEck, SolidX and the CBOE BZX exchange was withdrawn owing to the US government shutdown at that time.
According to recent reports, the VanEck proposal for a Bitcoin ETF was re-submitted for official approval and the SEC has announced that an application from VanEck, SolidX Partners and the CBOE is under review.
Gabor Gurbacs, VanEck’s in-house cryptocurrency legal advocate, has not commented on this issue yet. However, over the week, Gurbacs has been very vocal in expressing his optimism regarding the approval of a Bitcoin ETF. He claims that the ETF’s approval could play a big part in the crypto industry and would be beneficial to both the investors and the budding market.
The U.S Securities and Exchange Commission [SEC] has chosen 20 February to decide the initial decision regarding the ETF. This will also initiate the countdown of 45 days to decide whether the ETF will be approved or rejected again. The proposal that has been submitted will also be formally published on the SEC’s register in that duration.
When the filing is accepted, the clock will begin on the SEC’s approval process with regards to the Bitcoin ETF. This would be the second Bitcoin ETF to be registered this month. A proposal made by Bitwise Investment Management and NYSE Arca is also on the table for compliance.
Hunter Horsley, Chief Executive Officer of Bitwise Asset Management in a recent interview with CNBC’s Bob Pisani, expressed his optimism regarding the potential idea of a crypto-backed fund. Horsley explained that virtual currencies as a whole are in the “most viable’ state ever in the market.
He added that an ETF tracking these virtual assets is inevitable, now more than ever. The Bitwise CEO was confident that the SEC’s concerns regarding potential market manipulation and custody have been addressed and that steps have been initiated in the right direction.
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Bitcoin’s censorship resistance, freedom make it a game changer in the economic industry
Over the years, the global economic industry has witnessed significant changes. However, no change has been more significant or essential than the one introduced by the concept of virtual assets or Bitcoin. Today, Bitcoin and other virtual currencies are almost as essential as fiat money and despite the fact that digital assets have not reached worldwide adoption, the pace of growth has been substantial.
In a recent panel discussion, Jedidiah Taylor, CEO and Founder of Decent.Bet, the smart contract-based sports betting platform, stated that the idea of Bitcoin and blockchain technology projected a perspective of freedom and honesty which allowed individuals to have direct control over their own capital, without any oversight supervision from financial institutions.
The sentiment was followed by Nico De Jonghe, Founder and CEO of NDJ Investment Group, who added that the threat of decentralized assets loomed the largest over centralized institutions like banks, who were worried of the future prospects offered by Bitcoin and its impact on the long-term financial situation.
Tone Vays, a reputable analyst and Bitcoin proponent, opined and stated that Bitcoin’s biggest strength was the fact that it was completely “unconfiscatable” and that one’s BTC is completely safe if it is protected and secured with attention. The characteristic of censorship-resistant value transfer is also an absolute game-changer for Bitcoin, allowing it to competitively exist in the financial system.
The value of Bitcoin has often been criticized in the past, but its valuation has consistently proven its worth. In fact, Bitcoin has grown by more than 150 percent in 2019.
At press time, Bitcoin was priced at $11,371, with a market capitalization of over $202.18 billion. The staggering valuation of an asset that was unheard of 10 years ago, further underlines the potential of Bitcoin in the current market scenario and for the future economies.
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