A number of Bitcoin exchange-traded fund or ETF proposals are awaiting review of the US Securities and Exchange Commission (SEC). This indeed has occurred for the very first time since August 2018.
On the Wednesday’s edition of the Federal Register, the VanEck/SolidX proposal filed with Cboe BZE Exchange appeared and it’s slated for an official decision in the next 45 days. Yet another Bitcoin EFT proposal filed by Bitwise Asset Management with NYSE Arca was lately published in the week ended February 15. The Director of Digital Asset Strategy at VanEck, Gabor Gurbacs, informed CoinDesk though email that the Bitcoin ETF is actually in the interest of the public once approved.
He further added saying that the firm is continuously working together with regulators and major market participants in order to bring in simplicity, professional market standards, and transparency to digital assets. For VanEck the collaboration will provide it an opportunity to come up with a regulated product with adequate exposure to digital assets to market in the future. Gurbacs expects to experience positive outcomes for the investment in regulatory as well as market education, and hard work.
The Bitcoin ETF proposals are not just proposals. The global head of research at Bitwise, Matt Hougan, believe that the crypto infrastructure is growing quite rapidly which in turn may help in product launch, reports CoinDesk.
The comments were shared during the news of the Bitcoin ETF proposal; however, his comments reflect more on the crypto industry on the whole.
Almost a year back, there was only a single qualified crypto custodian, but now there seems to be half-a-dozen and the number is likely to grow in the future, said Hougan while setting an example.
However, he emphasized that it is not just an assumption. Many advancements and latest products have already entered the industry and that too in a very short span of time.
Hougan went forward to elaborate that sometimes more than a year back, crypto had no future. There were not many firms entering the market in fact. A few months back, there was no one like Fidelity. But now, it is growing quite rapidly.
He further said that the progress is occurring in spite of wide price fluctuation. The crypto market is said to be in the longest bear market ever since the launch of Bitcoin which was a decade ago.
There are possibilities of the progress being overshadowed by the price volatility, he added, there is still a huge level of progress in the industry. His comments are quite similar to that of Kobre Kim attorney Jake Chervinsky who reportedly said that he believes many months of development within the crypto infrastructure that would see crypto markets to grow to the level where the SEC would be happy to approve an ETF.
According to Chervinsky, the main point for the SEC to evaluate the Bitcoin ETF is Bitcoin’s liquidity, custody solutions, as well as market manipulation. In the end, the approval on the Bitcoin ETF proposal largely depends on the way the companies draft the request.