Recently, the popular crypto-influencer Ran Neu-Ner, also the host of Crypto Trader, interviewed Moshe Hogeg the CEO of Sirin Labs, Daniel Peled the CEO of Orbs, Yoni Assia Founder and CEO of eToro, and Yaniv Feldman the CEO of One Alpha. The speakers discussed the Bitcoin ETF and its influence on the crypto market.
Ran Neu-Ner started the discussion by asking the speakers how important they thought Bitcoin ETF was to the crypto market.
In Yaniv Feldman’s opinion, the Bitcoin ETF in a generic sense is a kind of a signal that the industry hopes to see. He added:
“I think that people are looking at the ETF more as an agreement of the SEC to forbid going to be something regulated or something that they can regulate,”
In his sense, people who are afraid at this point in time will be able to invest safely he concluded. As the discussion deepened, Ran Neu-Ner asked if SEC’s decision would impact the cryptocurrency market and people would begin seeing a bull market.
According to Founder of eToro, the ETF will not have a big impact on the actual holding in the market in a short term. He believes that the signal that legitimizes Bitcoin [BTC] is important to people. Explaining further, he said:
“If I’m not mistaken it’s around a hundred billion dollars and it took more than ten years to get there so we can expect probably less than a billion dollars in the Bitcoin ETF in the first six to twelve months which is not that significant to the market.”
Moreover, he stated that he would like to see people actually understand how to hold and transfer Bitcoin. The real change would appear when investors actually hold Bitcoin and custody them rather than going to traditional infrastructure markets, he added.
Neu-Ner asked Daniel if it was the requirement of an ETF for the underlying asset to actually get held somewhere, and if that was not the fundamental difference between an ETF and a futures product for example. To this, Daniel Peled stated that there are some ETFs holding underlying assets and a few other holding the futures and it is necessary for them to be backed.
However, according to him, the interesting point of discussion is the security of the digital asset. In his opinion, a lot of people in the cryptocurrency industry believe that if they own the private key, they become their own bank. On the other hand, the CEO believes that it is very hard from a security perspective to secure digital assets. Moreover, many have been stolen over the years, he added. He further stated:
“If I had a heart issue, I would go to the doctor rather than try to operate on it by myself, and the same thing goes for people with large amounts of funds under their control. I would want funds to be secured by somebody professional. So, I do think that for mainstream adoption we do need to see such instruments or, you know, real custodian solutions that institutions and the public can avail of”
Backing his opinion, he also explained the reason why Coinbase is one of the fast-paced companies in the crypto space. He stated that Coinbase hopes that people buy and sell digital assets, but at the same time they are custodians and that is what the ministry is looking for, he explained.
Speaking of Institutional money, Ran Neu-Ner said that the cryptocurrency community hopes that the ETF is the bridge that will enable institutions to bring money into cryptocurrency and questions if any institutional money is in the current scenario is encrypted.
Moshe Hogeg was confident in stating that there is no significant percentage of institutional money in the cryptocurrency industry at present. Nodding in acceptance to Yaniv’s statement he stated that the legitimization of Bitcoin is very important from a psychological perspective.
Ending his statement on a contrary note, Yaniv believes that the crypto world will not see ETF at the end of this year. In his words:
“I assume not, unfortunately, because I don’t think that the industry is ready for that in terms of both custodial solutions, I think they are, but they’re not you know in the institutional level.”
Pointing out to the fact that SEC’s denial was due to the fact that most of the volume in the market is unregulated and the fact that at present the market is seeing a lot of price manipulation even in the regulated markets is a problem, he explained. He also added:
” When you want to regulate an asset you want it to be safe for consumer usage. that’s a problem even though that in the traditional markets you know it’s just the same it’s just that in the traditional markets people do it under the table and in crypto, they’re doing over.”
Yoni stated in confidence that the industry will see a Bitcoin ETF. However, he also agrees that it will definitely take time but eventually the market will get there.
Subscribe to AMBCrypto’s Newsletter
Facebook’s Libra ‘sounds an awful lot like Proof-of-Stake’ and will ‘run into Ethereum’s problems,’ claims Jameson Lopp
Facebook’s “The Libra Blockchain” whitepaper has created quite a frenzy, not only in the cryptocurrency ecosystem, but also with U.S. government officials. Some people claim that Libra is not a blockchain, while others claim that it is going to kill Ripple, XRP and other similar blockchains. However, Jameson Lopp had a different view, claiming that the Libra blockchain has not solved massive problems that Ethereum has.
Lopp in his Medium article dissected the whitepaper and stated that the Libra Blockchain will be controlled by a set of authorities in a top-down fashion and that it will eventually move from a permissioned to a permissionless blockchain. The blockchain will offer a global currency – Libra coin, which will be backed “with a basket of bank deposits and treasuries from high-quality central banks.”
Since the whitepaper mentions that it will eventually move towards a permissionless and an open system, Lopp speculates that it “sounds an awful lot like Proof of Stake” and like Ethereum, it will face the same problems. He said,
“Apparently the plan is to open up membership after 5 years and hopefully they’ll have figured out Proof of Stake by then… I expect they’ll run into the same problems as Ethereum!”
Lopp added that “Calibra Wallet,” which is used to store the Libra coins, is the only wallet that can hold the coins for now and that it will require strict KYC/AML compliance. Since the blockchain conveniently replaces “stablecoin” for “resources,” Lopp speculates that it will concentrate more on smart contracts since it is built on a custom smart contract programming language called “Move”.
In addition to facing similar problems as those faced by Ethereum, the Libra Blockchain is facing more issues from a political and a regulatory standpoint. There was a lot of speculation even before Facebook dropped the whitepaper.
According to Reuters, United States House Financial Services Committee Chairwoman Maxine Waters issued a statement to halt/pause any and all developments on the project, until and after the Congress and other regulatory bodies have finished reviewing it. A senior Republican, Patrick McHenry, is also calling for a hearing on Facebook’s new cryptocurrency.
Subscribe to AMBCrypto’s Newsletter
Bitfinex LEO token comes out of nowhere to take the 13th spot on CMC with $1.8 billion in market cap
Ampleforth could help create next-gen synthetic commodities for portfolio diversification, claims Blockfyre report
Is Facebook’s Libra a fiat in crypto’s disguise?
Bancor reacts to increasing regulatory uncertainty; will disable conversion functionality for U.S users
Facebook’s Libra raises money laundering concerns associated with crypto again
Bitcoin [BTC]: #DropGold campaign gets called out for being ‘Bitcoin cartel’
Tron’s [TRX] Sun Network testnet goes live as Justin Sun places bet on its ‘unlimited scaling capacity’
Gaming giant Ubisoft takes its first steps towards bridging the gap between crypto and gamers
Tron join hands with LATOKEN to become an IEO payment token
Convincing Warren Buffett to buy cryptocurrency in just three hours is unrealistic, admits Tron’s Justin Sun
XRP closes 48 million ledger; XRPL Labs introduces solution for users’ destination tag problem
8 crypto exchanges were shut down in 2019; how does that affect the overall crypto space?
Bitcoin up for a long run as it re-visits an old bullish pattern
Bitcoin exhibits similar trends to pre-2017 bull run era; can history repeat itself?