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“Bitcoin ETF would probably be accretive to the Bitcoin price”, says MD of Grayscale Investments




"Bitcoin ETF would probably be accretive to the Bitcoin price", says MD of Grayscale Investments
Source: Unsplash

The Bitcoin ETF has been making the rounds in the crypto-space for a long time. The U.S Security and Exchanges commission recently rejected two ETF in the past week and the most awaited Bitcoin ETF decision is set on 16th August.

During an interview with CNBC, Micheal Sonneshein, the Managing Director of Grayscale Investments, a digital currency company, spoke about Bitcoin ETF and considers that the Bitcoin ETF could have a significant impact on the price.

The MD of Grayscale was asked about the impact that the ETF would have on Bitcoin [BTC]’s price. Micheal said that the introduction of the ETF creates a new use case for Bitcoin. Currently, Bitcoin is being used for speculation, people are buying and holding Bitcoin and not thinking whether the value will go up over time. Companies are using Bitcoin to send money seamlessly around the world and some people are using Bitcoin to tokenize different assets and keep a track of ownership.

He further states:

“But when you start taking digital currency like Bitcoin and putting it inside a financial product, well you are actually now creating an entirely new use case for Bitcoin that doesn’t exist at the moment.”

Due to all these factors, Micheal considers that it is hard to determine the effect ETF would have on Bitcoin [BTC]’s value. He further states that if he had to take a guess, the ETF would probably be accretive to the Bitcoin price because Bitcoin is finite in supply and it is being moved out of circulation and is locked up.

Moreover, according to Micheal, its unpredictable whether the Bitcoin ETF will be passed by the end of the year as the SEC still has concerns regarding the ETF. As mentioned in the denial statement of the Winklevoss ETF, the SEC is looking for factors in the underlying market such as the surveillance and regulation. The SEC is looking at the underlying market to determine whether or not it is appropriate for a Bitcoin ETF.

The Managing Director of Grayscale Investments spoke about the dissent published by Commissioner Hester Peirce regarding the Winklevoss ETF proposal rejection by the SEC. Hester Peirce claimed that the proposed rule change was in accordance with the regulatory and statutory standards of trading ETF. Peirce stated that the SEC decision for the rejection was mainly because of the underlying Bitcoin spot market and that the SEC is not “well positioned” to access the outcome of Bitcoin or any other market.

Micheal said that Commissioner Peirce brings out some valid points in her dissent statement and addresses a lot of concerns that could be pointed out to other industries such as oil or pharmaceutical industry. This is mainly because several of these industries lack surveillance sharing agreements and certain types of arrangements between the commission as a regulator and the industry itself.

He further said:

“That maybe invalidate some existing products that are available to main street investors. So, it is interesting to see that there is a little bit of a divide there at the commission but nonetheless I think we still have to wait and see how things play out in the next couple of months.”

Additionally, Micheal thinks that the ETF is not as important as people make it seem. He said that he is “exceedingly encouraged” by what Grayscale investment and other cryptocurrency firms in the asset management space or exchange space are experiencing. He states that Grayscale has been in the space since 2013 and is working towards providing their customers exposure to digital currencies through the purchase of a security.

According to the latest report published by the firm, Grayscale has raised over $250 million in new assets and about 56% of those assets are coming from the institutional investors. Micheal said that the money from the institutional investors is flowing in despite the fact that there is no Bitcoin EFT in the market at present.

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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.


John McAfee says he will reveal Nakamoto’s identity, Coinbase expands to 11 countries, and more





John McAfee says he will reveal Nakamoto's identity, Coinbase expands to 11 countries, and more
Source: Unsplash

Daily Crypto News – April 18

1. John McAfee on Satoshi Nakamoto: The Founder of McAfee Associates stated that he would narrow down on the identity of Satoshi Nakamoto until he reveals Satoshi himself, otherwise he would reveal his identity to the crypto community. He also spoke about how he knows about Satoshi, to read about it, click here!

2. Coinbase expands its services to more countries: The leading exchange platform announced that it expanding its services to 11 more countries, which includes India, South Korea, and New Zealand. People in these countries can avail services provided on, Coinbase Pro and its app on iOS and Android.

To know more about the countries Coinbase has expanded to, click here!

3. Craig Wright says the crypto-community want to silence him: Craig Wright, the self-proclaimed Satoshi Nakamoto, stated that the majority of the community was against him as they “desire to silence” him because they see someone who would bring an end to scams and pumps and dumps.

He also spoke about the next steps he would be taking in terms of the legal action concerning his defamation case. To read about it, click here!

4. Binance “marks the birth of a new genesis block”: The largest cryptocurrency exchange in terms of trade volume announced the launch of its Decentralized Exchange, and also stated that the mainnet swap would take place on 23 April 2019.

To read more about Binance DEX, click here!

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