Is The ETF Crypto Craze Over?

Is The ETF Crypto Craze Over?

It feels like the mention of a ETF for crypto or just Bitcoin often sends the price soaring. However there's actually been ever little movement in this action as nearly all of these ETFs either get rejected or have to be rebuilt in some way.

It was expected that Blockrock would be the ETF that would make it through and as soon as word got out every other firm released their own ETF version that mimicked BlackRock in order to not be left behind.

But once again our good old friend (sarcastic) the SEC stepped in and rejected Blackrocks ETF saying it was inadequate. Since then the price of BTC has fallen a bit but is still holding steady over $30,000 per BTC.

What exactly about it was inadequate is unknown but it wasn't long after that a revised version of the ETF was submitted once again and the hype is back.

In fact every other major institution for investment has applied for their own versions which has the potential of opening the floodgates to trillions of dollars. Even if just 5% of that money found its way into bitcoin and crypto again we would be looking at the value of bitcoin being the same as it was in the last bull run just two short years ago.

It's very clear that major businesses, corporations and well people and the rest of the world wants this while the SEC continues to try and block it. However as we all know governments are losing power and instead being replaced by companies and corporations. Some of the other major players in this ETF push besides blackrock are Invesco, VanEck, 21Shares and WisdomTree.

In another big update it's expected that Coinbase will becoming the active market surveillance to support the funds which is a new addition to this updated ETF proposal.

It's also important to note that these are what are known as Spot ETFs which I wrote about in more detail on a pervious article here What is a spot ETF

While we are all excited about what a ETF could mean for the crypto worlds it's clear that it could still be a long time until we get an approval. The SEC has a 45 day review process but can extend this to 240 days.

What is now clear however is the Bitcoin is not a security and because of that we have seen exchanges and other assets heavily start to get into it. It's unclear if the SEC will say Coinbase is a strong enough asset class to protect investors of ETFs but if it does pass could spark a furry of crypto investments mainly targeted at Bitcoin.

If the SEC knows anything that's good for it it should know the USA needs to be ahead of this and to start approving and warming up to crypto otherwise it will go off seas and become something greatly unmanaged that US citizens and companies will still invest in anyways.

Posted Using LeoFinance Alpha