The weekend has been all about bitcoin ETFs, a conversation that was stirred up by the latest announcement by the SEC to reject the Cameron and Tyler Winklevoss brother’s ETF proposal. The announcement came on Thursday and prices took a dip that some feared would lead to a bad place. Not so surprisingly, bitcoin was able to shake off the shock and recover fast.
When the dip happened, it was cited that it was caused by panicking investors and true enough this phase was short-lived. In less than 24 hours after the price fall to just below $8,000, prices had bounced back to $8,200. Prices have also been surprisingly good over the weekend, unlike the past weekend, there’s been no rapid fall.
Although bitcoin has not been as steady as a rock, it has maintained at around just over $8,100. This is great because more often than not we see prices surge almost immediately after the weekend and $8,100 is a great place to pick up from.
Bitcoin ETF Proposals Just Keep Coming
So, the SEC has rejected yet another proposal-this one for the second time-but, they just keep knocking at them. Over the years different companies have proposed for what would be the first bitcoin ETF but thus far the SEC has found reasons to reject each of them.
However, the ‘big day’ is on the horizon, although the Winklevoss twins’ proposal was rejected and this year alone has seen at least three others rejected, the call for bitcoin ETF’s is just intensifying and bigger and bigger organizations are getting in on it.
Bitcoin ETF Stirring Up Different Reactions
Many experts have defined bitcoin ETFs as the single catalyst that will send bitcoin to the moon and in truth, a single approval is all that is needed to send bitcoin soaring higher than it ever has.
One of the reasons this would be is because bitcoin ETFs would be invitation cards for institutional investment, money that has historically moved the market. These experts absolutely believe that bitcoin is mature, and it’s about time they were approved.
Even one commissioner at the SEC says its time-as she respectfully disagreed with the commission’s recent ETF rejection- Commissioner Heston Peirce said;
“Many investors have expressed an interest in gaining exposure to bitcoin, and a subset of these investors would prefer to gain exposure without owning bitcoin directly. An ETP based on bitcoin would offer investors indirect exposure to bitcoin through a product that trades on a regulated securities market and in a manner that eliminates some of the frictions and worries of buying and holding bitcoin directly. If we were to approve the ETP at issue here, investors could choose whether to buy it or avoid it. The Commission’s action today deprives investors of this choice,”
Clearly, bitcoin ETFs are good for everyone involved, at least as far as the eye can see. However, it hard not to see that although they are good, they are not really necessary and this digital asset can do without them. Michael Vogel, Founder of Netcoins, says that bitcoin ETFs are “an interesting idea,” but, does not think they bind bitcoin to its success or failure;
“A large ETF would likely have a significant impact on bitcoin prices as well, not just due to trading volume but simply because of the volume of bitcoin that it would remove from the liquid trading market”
The good news is that the SEC is not totally against the idea of bitcoin ETFs and remain open to the idea. Currently, there are a few proposals on the table-some of which offer great hope-what remains is for the SEC to review, then approve or reject.
But from the crypto community, only one answer really matters, there’s only one right answer for them, approved. Those words are the ‘magic’ words that the community truly believes will set the industry on a mainstream course.