As Cryptocurrency is desired by most crypto enthusiasts to be adopted on the stock exchange markets globally, there is still a war of Armageddon to be fought, before the course see the light of the day.
The recent rejection of Bitcoin ETF by SEC for a second consecutive time puts cryptocurrencies to in an extreme situation to kowtow to the demand of SEC, as the parties are seeking new grounds for agreement. The rejected Bitcoin ETF proposal was made by the Winklevoss twins, of crypto exchange, Gemini.
The Encroachment into The Cryptocurrency Space
The cryptocurrency space is on an adventure into the world of universal acceptance. However, this might be on the verge of costing cryptocurrency a division of its territory, to move into the appropriate region it envisages to reach. The suppose diplomatic war can be said to have characterised the attempt on obtaining Bitcoin ETF in the United States of America.
Cryptocurrency has received two full setbacks, as attempts to get that has seen absolute rejection from the SEC. This past week, the bullish move of Bitcoin that took a reversal was attributed to the refusal, as the Winklevoss twins, of crypto exchange Gemini Bitcoin ETF proposal got rejected again.
To help the process of Bitcoin ETF acceptance, NASDAQ was involved by Gemini in creating a proper pathway to the attainment of the Bitcoin ETF in April of this year. The process has seen a considerable growth nevertheless still with a great disdain to the nature of cryptocurrency by SEC and Nasdaq in getting accepted by SEC with its present status.
The primary concern why the acceptance of Bitcoin ETF is still hanging in the Bitcoin’s lack of proper surveillance to avoid possible price manipulation and fraudulent activities, especially as it pertains to the currencies global circulation and the usage in the unregulated offshore markets.
This means that for the Bitcoin ETF to become formally accepted, it has to bend to market surveillance and market regulations, which will deprive the cryptocurrency of its core feature of decentralisation – which makes it more lucrative and attractive for the enthusiasts to use freely.
Meanwhile, bending to the dictates of Nasdaq and SEC, which will lead to eventual Bitcoin ETF would lead to increase in the value of cryptocurrencies, making many of its investors wealthy.
Another bleak the cryptocurrency faces is that a Bitcoin ETF will offer shares in trading funds which will prevent investors from owning the crypto asset. This, in turn, will lead to a decrease in the potential due to institutionalisation and regulated market.
On the long-term basis, other cryptocurrencies in the market that are not within the same level of regulations, face extinction, as the regulated market will expel them out with time.
The recent development has placed the decentralised nature of cryptocurrency into the verge of kowtowing to the centralised view of the financial system in the world. When Bitcoin ETF will be approved no one knows, but the community could only but be optimistic for the best for cryptocurrencies.