One other bitcoin ETF bust.
The Securities and Trade Fee final week issued one more rejection to a potential issuer, Wilshire Phoenix, for a bitcoin-based exchange-traded fund, the most recent in a series of failed attempts by corporations to push a bitcoin ETF previous regulators.
Even so, market commentators battle to consider that is the top of the street for the long-awaited fund.
“I doubt very closely that it may be the final straw,” Chris Hempstead, director of institutional enterprise improvement at IndexIQ, informed CNBC’s “ETF Edge” on Monday. “I believe everybody will proceed to take heed to the suggestions and the notes from the SEC, what their feedback are, and they’ll proceed to deal with it.”
If market and investor demand finally suggestions the scales in bitcoin’s favor, the SEC will doubtless assessment the purposes and will come to a distinct conclusion, Hempstead mentioned.
“They’re going to most likely take one other have a look at it and have completely different sorts of concerns,” he mentioned. “I do not assume it is the final straw, however I do not predict any important adjustments from the SEC’s resolution within the close to future.”
DataTrek Analysis co-founder Nick Colas, who mentioned in January that the percentages of a bitcoin ETF getting accepted this 12 months had been 10%, maintained his not-so-peachy outlook.
“You may see a central financial institution cryptocurrency earlier than you may see a bitcoin ETF,” Colas mentioned.
That would come within the type of a digital coin tethered to the U.S. dollar, which might make for frictionless digital transactions, however, in some ways, the market already has that in place, mentioned Dan Wiener, the chairman of Adviser Investments and the senior editor of The Unbiased Adviser for Vanguard Traders, a extensively adopted every day publication.
“Individuals use Venmo proper now. They’ll transfer their cash round. It is not that large a deal. Do we actually want bitcoin? I am not a drug supplier. I am not frightened about transferring cash,” Wiener mentioned in the identical “ETF Edge” interview. “Extra essential is blockchain know-how, how companies are utilizing blockchain. Bitcoin or any of those different cash are only a manifestation of a know-how.”
Bitcoin has climbed to above $9,000 this 12 months after cooling off towards the top of 2019. Bitcoin bulls together with cryptocurrency investor Michael Novogratz have mentioned bitcoin could hit all-time highs in 2020.
— to www.cnbc.com