Charles Hoskinson was recently interviewed in Hong Kong by Gyro Finance. He offered some words on the much asked about and long-awaited cryptocurrency ETF approval. The Cardano founder said it is not a matter of if but when.
“I think the percentage of approval is inevitable. Eventually, it will get approved one way or another. The challenge was not whether it would be approved, it’s the time it would happen. A month, a year, two years, three years, it’s challenging. The biggest issue for them is market stability. So they are waiting to see the bad actors get flushed out of the space, the bad exchanges shut down, and at the base layer, be stable. And then once that’s there. They’ll say OK, this environment can sustain an ETF.”
The approval of an ETF is considered by many inside and outside of the crypto space, as a sign of legitimacy. A lot of investors are banking on the eventual approval being a catalyst for a huge bull run. But cooler heads realize the process could be a long and there’s work to be done.
Hoskinson’s thoughts echo what SEC chairman Jay Clayton just said this week on Fox Business.
“What I’m concerned about at the moment is if it can be reasonably demonstrated that the underlying trading is generally not manipulated, it’s happening on reliable venues with good rules and that custody is something we can feel comfortable about.”
Clayton went on to acknowledge the potential of the blockchain. “I think this technology has and is already demonstrating pretty significant promise, but it’s demonstrating significant promise in the places where it’s consistent with our approach to capital raising in the past.”
It’s a common sentiment that the cryptocurrency space is packed with folks with bad intentions. But teams are still building useful applications and forging forward. The bad actors may never fully be eliminated, but eventually, the positives will far outweigh negatives. The Crypto space will continue to grow regardless of the wait time on the ETF approval.