A co-founder of the Wilshire Phoenix, a US exchange that trades and handles crypto derivatives, has said that the company is not planning on launching a bitcoin-based exchange-traded fund (ETF) anytime in the near future.
Scotiabank’s head of institutional investment and the founder of the ETF’s advisor, says the ETF will not be issued in 2021.
As many of you know, the cryptocurrency market has been a roller coaster ride, with the price of Bitcoin (BTC) climbing to nearly $20,000 at one point this year before falling back to around $6,000. Market pundits and analysts have said that the price of bitcoin is beginning to stabilize, and that new investors should start buying now before the price of BTC starts to rise again. But what about those who think bitcoin is a bubble and is just a fad?. Read more about bitcoin etfs and let us know what you think.
William Cai, co-founder of investment company Wilshire Phoenix, is the latest to question if a Bitcoin (BTC) exchange-traded fund (ETF) would be approved in the United States in 2021.
Cai told Business Insider that a Bitcoin ETF in 2021 is improbable, and that the earliest potential dates for the US Securities and Exchange Commission to approve a BTC ETF are 2022 and 2023.
Several Bitcoin ETF aspirants have filed with the Securities and Exchange Commission, including investment management firm Global X, which filed in July.
The SEC has chosen to postpone its judgment on the pending ETF application, and Cai believes the commission will reject these applications, saying, “We think they’re all going to be stuck.”
Cai is familiar with the SEC’s approach to Bitcoin ETF applications. The commission, as previously reported by Cointelegraph, denied Wilshire Phoenix’s Bitcoin ETF application in February 2020, much to the company’s dismay.
Despite the new head of the SEC, Gary Gensler, the commission’s position on Bitcoin ETFs remains unchanged, according to Cai. “I haven’t seen anything that indicates they’ve changed their minds,” Cai said.
The Wilshire Phoenix co-founder said in the interview that price manipulation is still a significant issue for the SEC.
According to the CEO of Osprey Funds, the US will approve a Bitcoin ETF in 2022 ‘at the earliest.’
Cai isn’t the only one who doubts that a Bitcoin ETF will be launched in 2021. In June, Greg King, CEO of Bitcoin trust issuer Osprey Funds, said that an SEC-approved BTC ETF will be available in 2022.
King said at the time that Bitcoin ETFs were not high on the SEC’s priority list. The commission was focused on regulating meme stock, environmental, social, and governance compliance, and the Robinhood initial public offering, according to Cai.
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