A ‘Big' Positive Step Towards the Bitcoin ETF Approval

Even CFTC sees the “great promise”

In terms of the price of Bitcoin, criminal charges on the popular cryptocurrency derivatives exchange BitMEX may be bearish, but the same isn’t true for the overall market.

Just like it is bullish in the long term, this could help in getting the much-desired Bitcoin exchange-traded fund (ETF) an approval.

“Assume the CFTC & DOJ bring Bitmex down. The absence of Bitmex may then result in US exchanges and OTC desks becoming markets of “significant size,” sharply increasing the odds of the SEC approving an ETF,” said trader and economist Alex Kruger.

These past few weeks, several attempts at a Bitcoin ETF have been made to no avail as every single one of them has been rejected by the agency over the grounds of manipulation.

But the crypt community hasn’t let go of the hope for approval eventually. An ETF holds so much importance for the community because it is expected to bring a large number of inflows in the market, as such, pushing the prices higher. “A parallel demand curve shift.”

An ETF would be the “opportunity of a lifetime” that would allow retail to front-turn the institutions for once. Former macro hedge fund manager and a Bitcoin proponent, Raoul Pal expect “every” pension plans and family offices to allocate some of their money to it — billions of dollars pouring into it.

A Cue from CFTC

Seychelles incorporated exchange is known for its 100x leverage, and according to Bill Barhydt, co-founder, and CEO of Abra, it has been the key reason we don’t have a US Bitcoin ETF.

“Their market is easily manipulated by large traders. Not a valid reason for no ETF imo. Just a fact,” he said.

Although it may not be sufficient for an ETF approval, it is a big step towards that, for sure.

Adding to the expectation is the statement from Chairman Heath P. Tarbert, giving a hint of what’s to come, in which he said digital assets hold “great promise” not only for the derivatives markets but also the US economy.

“For the United States to be a global leader in this space, it is imperative that we root out illegal activity like that alleged in this case. New and innovative financial products can flourish only if there is market integrity. We can’t allow bad actors that break the law to gain an advantage over exchanges that are doing the right thing by complying with our rules,” Tarbert said.

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AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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