eToro CEO Thinks a Bitcoin ETF Approval is Still A Distant Dream, Puts Five Year Timeframe on Decision
A Bitcoin ETF has been a dream for people in and around the crypto ecosystem. It is anticipated that the crypto bear market can only be stopped by approval of an ETF. However, many think that this is a distant dream, including eToro CEO Yoni Assia.
At the Isreal, Bitcoin Summit dived into the details of this problem. According to Assia, the very nature of the crypto industry makes it hard for traditional regulators to give it green light.
“The American capital markets, for the SEC, are already like a blockchain. They can monitor every single transaction that takes place. So when they look at crypto and all these exchanges spread across the world that doesn’t have control, and will probably never have control, they understand they can’t necessarily [prevent price manipulation] – and that’s a new paradigm for them,” said Assia.
He added that the recent downfall and fluctuation in the crypto market has added to the traditional investor’s viewpoint that cryptos are doomed to fail. Assia stated:
“The people that said ‘crypto is a bubble, people are going to lose their money’ are now the smart people in the room because they were right”, said the eToro CEO. “Those people get credit [and can] delay things a bit further. So I think it’s going to be a while before we see an ETF but you never know.”
Even though he is not a big fan of ETFs he is bullish on cryptos. He thinks that if a country fully embraces digital currencies the entire banking system of the country is bound to collapse. He added:
“But it’s inevitable that it will lead some governments to bankruptcy – so the fact that some of them are blocking it does make sense. But the average lifespan of a fiat currency is 30 years, so could all live to see fiat currencies disappear.”
ETFs are becoming a large part of the investment landscape. Research firm ETFGI predicts that in 2020, ETFs and ETPs listed in Europe will reach $1.1 trillion. Morgan Stanley forecasts global ETF assets to top $9 trillion by 2022.
As interest in these products grows, regulators have been addressing structural vulnerabilities. Passive fund providers are now arguing there is sufficient market liquidity for a bitcoin ETF to be launched in 2019.