Despite having brushed away the Winklevoss Twins – twice; denied countless other Bitcoin ETF applications, and now recently delayed a decision on three more applications, the CEO of crypto index fund provider Bitwise Asset Management says he’s still positive that the SEC will warm to the idea.
Bitwise is one of the companies, after applying to the SEC in January, that has had the SEC call for more time to make its decision. The expected call is now set for late October in regards to the company’s application.
The SEC has been spouting the same reasons for not allowing a Bitcoin ETF through the gates over the last few years, despite a noticeable change in the cryptocurrency market. This is where CEO Hunter Horsley feels things have changed, though.
Horsley believes that having heard the same complaints from the SEC since early 2017, Bitwise has done enough to put their minds to rest. He adds that there has been a tremendous amount of progress in the markets in the last 12 months.
An ETF is a firm favourite for traditional investors. It allows them to get their hands on an asset without actually owning it – something beautiful to the more nervy and unsure crypto-questioner who still want to cash in on volatility.
However, volatility and potential for market manipulation have kept the SEC at bay, but according to Horsley, there are new factors to consider.
In an interview on Bloomberg, Horsley, and his global head of research, Matt Hougan, went through a few good points.
Susquehanna International Group, one of the most significant players in trading traditional investments like stocks, options, and ETFs, has a Bitcoin trading desk; the general market health is also improved, with better arbitrage and new spreads.
There is even high-end insurance entering the cryptocurrency space as Lloyds of London now provides cover against theft of cryptocurrencies.
And, with all these new advancements at their feet, Bitwise hopes the SEC will take the plunge so that they can achieve this ‘holy grail’ of Bitcoin investment. Bitwise, and others, clearly feel that if they can secure this, Bitcoin will explode as an asset. However, it must be remembered that ETFs are already operational in Europe.
The SEC remains the most pig-headed of regulators, and probably for good reason as Hougan mentions how money is managed across the pond.
“A key aspect to a Bitcoin ETF in the U.S. is that it unlocks the financial advisor marketplace. So far, crypto has focused mostly on retail investors – or institutional investors,” he said. “Half the money in the U.S. is managed by financial advisors, and right now, it’s very difficult for them to access that market.”