An EFT is an exchange-traded fund, that is, a type of investment that trades like a stock and tracks the performance of an index, commodity, currency, or basket of assets.
In this case, Bitcoin EFT is a fund that invests in the world’s most popular cryptocurrency, allowing investors to buy and sell bitcoins without directly owning them.
However, this is not as easy as it sounds, as bitcoin EFT requires approval from the US Securities and Exchange Commission (SEC) to run. The SEC has denied multiple Bitcoin wire transfer requests in the past, arguing that the cryptocurrency market is highly volatile, manipulated and prone to fraud.
Therefore, if you want to invest in Bitcoin EFT, you will have to wait until the SEC changes its mind or someone makes you an offer you cannot refuse. How likely is it that the SEC will approve a Bitcoin ETF? This is something very difficult to assess. First of all, because there is no clear path and much depends on the discretion of officials who have the authority to approve or reject requests.
The SEC is the US Securities and Exchange Commission, a government agency responsible for protecting investor interests and regulating the financial market.. We could compare this to medical school, which has a number of requirements for a doctor to practice medicine. Is the SEC a repressive agent? Well, it depends who you ask. For those who want to invest in innovative or risky financial products such as cryptocurrencies, the SEC may seem too strict and conservative, favoring only one type of market to the exclusion of others. Is the SEC evil? To be honest, I don’t think so. It is only trying to fulfill its function of ensuring the safety and transparency of investments. Of course, sometimes you can make mistakes or fall behind technological changes. Well, no one is perfect.
The Securities and Exchange Commission is like a referee at a football game, who must enforce the rules and prevent fouls. When a financial product enters the market and the SEC steps in, it often faces criticism. And this usually happens because the product has caused optimism among investors, and they see the SEC’s actions as an unnecessary hurdle. However, when a product fails or fails, causing huge losses to investors, critics this time criticize the SEC for inaction. And we see this in the world of cryptocurrencies, where The SEC is frowned upon when it interferes, but also when it doesn’t.
For example, the case of FTX, a cryptocurrency trading platform that was fined by the SEC for offering unregistered products. Some investors have complained that the SEC is limiting their options, while others have wondered why the SEC did not take action sooner to prevent potential fraud. So, it never rains, which everyone likes.
Have you ever felt frustrated by the criticism you receive no matter what you do? Well, perhaps there is an explanation for this “bad if you don’t do it, and bad if you do it” attitude. In the world of finance, companies are more organized than users. This creates an asymmetry. For a company, the actions of the Securities and Exchange Commission impose costs and restrictions. Thus, it is not uncommon for a non-compliant company, a rejected company, or a company under investigation to receive the most media attention. In other words, it is not uncommon for a supervisee to not have the best relationship with their supervisor. In this case, the SEC is often the villain. Just like the referee is usually the villain in a football final. Peror that doesn’t mean they’re bad, they just have a hard job.
Why don’t users unite to protect their interests? For example, exchange users are scattered and dispersed. Compared to exchange, this asymmetry has a clear disadvantage. However, it is the user who gives his money to the exchange. In this case, the public bodies usually represent the users. But it’s not always easy. Because There are users who are on the side of the company and do not feel represented by public organizations. And here comes the confusion.
Sometimes it seems that the SEC is a headache for companies and users. Of course, when an exchange fails, users tend to get organized. And lawyers are usually the ones government agencies use to get justice. In short, the investor has a love-hate relationship with the SEC. Maybe they need couples therapy?
Getting the first bitcoin ETF approved by the SEC doesn’t make it easy. In fact, it has rejected all applications for Bitcoin ETFs so far. But there is hope. Some experts believe that this year could be a good year due to several factors that could influence the SEC’s decision. For example, the case of Ripple against the SEC, which could become a precedent for the regulation of cryptocurrencies. Or a lawsuit from Grayscale, a company that offers investment funds in bitcoin and other cryptocurrencies, which could force the SEC to accept their conversion into ETFs.
Also, there are some big names in the financial world who are betting on Bitcoin ETFs. BlackRock, the world’s largest asset manager, has applied alongside Coinbase, the largest cryptocurrency exchange in the US. Other giants such as WisdomTree, Invesco and Valkyrie have also followed suit.
Will this be enough to convince the SEC? Nobody knows, but some analysts give a 65% chance. ANDor I would say that sooner or later the requirements will be met. The question is when. This year? Next? After the next?
Disclaimer: The information and/or opinions expressed in this article do not necessarily reflect the views or editorial line of Cointelegraph. The information presented here should not be taken as financial or investment advice. All investments and commercial movement involve risk and it is the responsibility of each individual to conduct proper research before making an investment decision.
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