Few developments are expected to drive Bitcoin and the cryptocurrency industry forward. One of these is the approval for Bitcoin ETFs. However, a prominent cryptocurrency market analyst and senior analyst at eToro Mati Greenspan sayS Bitcoin does not completely depend on an ETF to do well.
In an interview with Ambcrypto, Greenspan said “The idea of the SEC approving a Bitcoin ETF is basically saying that the government is going to approve something that the banks made. I don’t think Bitcoin cares very much about that.”
In his opinion, a Bitcoin ETF will only be an addition to what Bitcoin already has but will not be a determining factor for the growth of Bitcoin. He also expressed doubt that the SEC will make a decision on the several Bitcoin ETF applications it has received, top among them being the Bitwise application which is intended to solve two major problems that have kept the ETF applications from being approved – market manipulation and wash trading.
The SEC has delayed approval for a Bitcoin ETF since last year citing different reasons. The approval was expected to be given towards the end of 2018 but was again delayed until 2019 and up to now, no decision has been made but another hearing has been scheduled for 19 May 2019.
It is unlikely that the SEC will give approval for any of the applications before it or even draw any conclusions on them as some people believe it is too early for such.
The ETF is expected to attract institutional investors such as hedge funds into the cryptocurrency market thus making it grow as more money comes into the industry.
Nevertheless, Bitcoin has exhibited a level of strength on its own without any ETF especially in 2019. At this time, Bitcoin is already set to soar to the $6,000 support it had last year and experts believe it is bound to go much higher.
While they are important, Bitcoin ETFs will therefore just be an icing on the cake and not the cake itself. We still look forward to an approval though as it is a sign of good faith from the government through the SEC if not anything else. The problem is even the SEC is not sure when this will happen.