The crypto market landscape has been bleak since late 2017, primarily due to consistent price struggles. This prolonged downturn feels relentless, with the crypto world eagerly awaiting a significant breakthrough. Yet, a whisper of optimism emerges from SEC Commissioner Robert J. Jackson Jr. hinting that he believes A Bitcoin ETF might just be around the corner.
Jackson was indirectly quoted In a chat with Congressional Quarterly, he stated:
\"Eventually, do I think someone might meet our criteria? Yes, I'm optimistic about that.\"
While these words are cautiously optimistic, Jackson also highlighted the crucial need for strong consumer protections.
\"Earning approval from the world’s deepest financial markets is no easy feat, and rightly so. Once accessible to everyday investors, there's a genuine risk that people could suffer losses.\"
The Importance of a Bitcoin ETF
For those unaware, an exchange traded fund , or simply ETF, is a financial tool that lets investors speculate on the price of an asset class without holding it. ETFs are especially handy in tangible asset markets like Gold, Oil, and Wheat.
While Bitcoin may not be a physical entity, a Bitcoin ETF offers institutional investors a safer way into the crypto world, bypassing the hurdles of digital asset management. If institutions are able to engage with Bitcoin pricing through a well-regulated ETF market, it might bring a much-needed influx of institutional funds into the crypto sphere.
It's critical to remember that numerous attempts have been made to secure SEC approval for a Bitcoin ETF, all ending in failure. One of the most notable attempts was by the Winklevoss Twins, pioneers of the Gemini crypto exchange.
SEC Commissioner Jackson noted in his Congressional Quarterly interview that it wasn't hard to deny the Winklevoss ETF application, primarily due to inadequate safeguards against market manipulation threats. He elaborated, saying, “There, the risks of manipulation and victimization were immense. Liquidity problems were a significant concern.”
CBOE Tries Again - An Uphill Battle
Despite the general sentiment that the Winklevoss ETF was a long shot, the crypto community had higher hopes for the Chicago Board of Options Exchange (CBOE), given their reputation and existing Bitcoin Futures market since 2017. As such, if an ETF application were to clear the SEC, many anticipated it would be the CBOE's.
Blaming the extended U.S. Government shutdown, the CBOE withdrew its pending Bitcoin ETF filing on January 22nd, only to refile it one week later . Consequently, speculation about a 2019 Bitcoin ETF approval has re-emerged. However, immediate celebrations are premature, as technically, the SEC has until October to finalize its decision. Aside from a possible ETF approval, it's uncertain what else might reignite enthusiasm among the discouraged crypto advocates.
