This article was originally published here.
It is not a secret that several investors are currently very anxious for the arrival of the Bitcoin exchange-traded fund (ETF). Many investors hope that a new ETF could bring the market to the next bull run, so they are very enthusiastic about it.
However, the U. S. Securities and Exchange Commission (SEC) is taking its time to approve the ETF, which is making the market uneasy. Now, a recent article by CCN argues that the slowness of the SEC could lead the United States to lose billions.
One of the main reasons why the process is taking so long is because Jay Clayton, the chairman of the U. S. SEC, is not very enthusiastic about the cryptocurrency market. He is not against Bitcoin necessarily, but he is deeply concerned that there is simply a lot of potential for manipulation in the market.
In a recent interview to Fox Business, he has affirmed that he is concerned if this is the right moment for the ETF because the market is yet to prove that it cannot be manipulated so easily. He believes that the underlying trading can be manipulated because the market lacks “reliable venues with good rules”.
CCN argued that the blockchain is certainly reliable and it has good architecture and rules, therefore, the SEC is wrong to be so concerned about the ETF. Their main point is that the Bitcoin is working for years and tens of billions of dollars were already traded, which makes it very trustworthy.
Making Businesses Go Overseas
One of the main points about not approving the Bitcoin ETF is that the SEC could be throwing away the chance to make the U. S. blockchain market stronger. Bitcoin, as CCN affirms, is definitely reliable and it has immutable rules. Someone could argue that you can manipulate the market anyway, but the solid that sustains Bitcoin is strong, this is undeniable.
There is a demand for Bitcoin investments like the ETF. The fact that we are currently in a bear market does not mean that the demand is completely over, and there are several companies entering the market now such as Fidelity Investments and the Intercontinental Exchange (ICE).
If the SEC is not approved, many rich investors will simply look at other countries. The largest exchange in the world, Binance, for instance, is based in Malta, not the United States, despite being the largest economy in the world.
Could the ETF Bring a New Crypto Boom?
It is also important to perceive that a lot of people are hoping that the ETF will bring out the new bull run in the crypto market. ETFs track the index for a market and, as a lot of investors would start to invest in cryptos via the ETF, the values are bound to go up.
Because of this, the market is awaiting so eagerly by the ETF. According to CCN, the total market cap of all ETFs in the U. S. hit $2 trillion USD, so this is certainly a big market for cryptos and when it finally happens, it will be an important landmark.