On Tuesday, August 7th, the Securities and Exchange Commission announced that it has postponed the timing of a decision on the first-ever cryptocurrency exchange-traded fund, which in turn was a massive blow for the entire cryptocurrency community.
However, regardless of the setback on the application submitted by SolidX and VanEck and the subsequent 10% fall in the price of bitcoin BTCUSD, -0.04 %, Several crypto enthusiasts, and investors believe that the delay is in fact: just a delay.
Recollecting a statement given by Matt Hougan, global head of research at Bitwise Asset Management, regarding the SEC’s decision to postpone its decision to September 30th, he had stated, “I think it was broadly expected.”
Hougan also further said, “It goes to show that the regulators are wrestling carefully, however, they still have numerous issues in need of clarity.”
Closely watching the SEC decision is Bitwise, as the San Francisco asset management firm has issued its own proposal for a crypto-related ETF to the SEC.
However, in comparison to other ETF’s Bitwise’s is slightly different as it tracks a market-cap-weighted index fund of the world’s 10 largest cryptocurrencies and not of a single digital asset.
Hougan’s earlier opinion found some support in the form of Colorado-based lawyer Richard Levin, who said, “I think it is seriously being considered by the agency.”
Levin a worker for the firm Polsinelli LLP that studies about regulation in the cryptocurrency industry also said, “Gradually, they are getting more comfortable with the idea, however, expect it to take some time, as they are doing what they have to do, that is to promote market integrity and protect investors.”
Levin then went on to add, that he believes a bitcoin-related ETF will eventually come into existence, however, but, currently, he says that he has no idea about it.
Regulators still have their concerns regarding the Market integrity. And due to lack of liquidity and also the absence of a universally coordinated crypto-regulation it still raises concerns that the underlying exchanges of a bitcoin-related ETF would track remain susceptible to manipulation.
Adding further to this issue, the Wall Street Journal published a detailed analysis of pump-and-dump schemes involving smaller digital currencies on this Monday.
Significantly Hougan had a rather unique take on this matter, as he went on to say, “everyone in the cryptocurrency space likes to move fast, and it is the job of the SEC to put some speed bumps to it.”
Bitcoin(BTC) prices continue to slump, and going on to make a fresh three-week low on Wednesday