On 13 October 2019, it is reported that BKCM CEO Brian Kelly said that the crypto ecosystem hardly needs a Bitcoin (BTC) exchange-traded-fund (ETF). He reasons that BTC is available on Fidelity and TD Ameritrade, which are regulated platforms.
He also stated that the move by United States Commodity Futures Trading Commissions (CFTC), to declareEtherium as a commodity made a much more significant impact on the crypto ecosystem.
BTC ETF is not Necessary to the development of the Crypto Market
Kelly made these comments during a video interview with CNBC on 11 October 2019, as a response to SEC’s rejection of BTF EFT proposal by Bitwise. He stated:
“You have companies like Fidelity and TD Ameritrade starting to push into this space. So ultimately, you’re going to be able to buy Bitcoin in a regular brokerage account, or it’s going to look like a regular brokerage account. So I’m less concerned that you need a bitcoin ETF at this point in time.”
What benefits the Crypto Ecosystem’s Development?
Kelly stated that what is more important for the crypto ecosystem is decisions such as the one made recently by CFTC, which declared Ether as a commodity:
“The CFTC saying that Ethereum is a commodity is huge for the space. It gives us regulatory clarity. […] That opens the door for institutions to come in. […] everybody is concerned, what if they ban it? […] The CFTC said ‘we’re not banning it yet, we’re gonna regulate it,’ and now investors can say ‘Put them in my commodity bucket.’”
CFTC’s decision to declare Ether (ETH) as a commodity was the first significant step they have taken in guiding the crypto coin.
“We have been clear with bitcoin; we haven’t said anything about ether-until now […] it is my view as chairman of the CFTC that ether is a commodity.”
Back in May, Kelly also predicted that Bitcoin prices would rise as a result of the supply cut:
“We generally have a rally year into it, and a year out of it. And so we’re just at the beginning of that stage […] a supply cut is generally bullish.
Why the US SEC Reject BTC ETF Proposal
The SEC issued an order document which said the rejection was as a result of Bitwise’s failure to meet certain requirements:
“The commission is disapproving this proposed rule of change because, as discussed below, NYSE Arca has not met its burden under the exchange act and the commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section 6(b) (5), and in particular the requirement that the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices.”