During a broadcast of CNBC, Chris Hempstead, director of business development institutional IndexIQ, a concern was raised that if the demand of the market and the investors increases in favor of Bitcoin (BTC), the SEC could approve a Bitcoin ETF. The crypto ecosystem has a lot of time fighting for the approval of a Bitcoin ETF by the SEC. However, the agency response has always been negative. For this reason, different executives met during a broadcast of CNBC to discuss the likelihood that the Securities and exchange Commission of the united States (SEC) to grant a licence for a Bitcoin ETF. Let us recall that in January 2019, was presented for the first time the application of Wilshire Phoenix with the SEC. However, despite amending his request six times in 13 months, the SEC answered with a resounding no. The justification behind the decision were concerns about the manipulation of the market.
A greater retail demand is required for a Bitcoin ETF!
In the midst of the debate, Chris Hempstead predicted that a Bitcoin ETF will come to the crypto ecosystem when it grows up retail demand.
“I very much doubt that this is the straw that broke the camel’s back. I believe that all will be hearing the comments and the comments of the SEC… and will continue addressing the issue,”Chris Hempstead to CNBC.
However, it is important to note that Hempstead clarified that it does not predict “no significant change in the decision of the SEC in the near future.” In addition, Hempstead predicted that the stablecoins and other cryptocurrencies will be regulated as the sector grows and matures. He argues that the people will gain a greater understanding of the functioning of the technology ledger distributed (DLT). And is that still many people are unaware of the world of cryptocurrencies, so that retail demand remains low. In fact, as proof of this, Dan Wiener, chairman of Adviser Investments, roundly rejected the notion that there is the need to use BTC. “Do we really need Bitcoins? I am not a drug dealer. I am not concerned with moving money (…) We have many, many ways to move money, I don’t know if we need to be able to hide ourselves or our identities”. Also, Nick Colas, co-founder of DataTrek Research, noted in January that the odds of a Bitcoin ETF was approved this year were 10%. Well, Tails said that “first, we will see a criptomoneda of the Central Bank, before you see a Bitcoin ETF”. The experts seem to agree that we will not see approved a Bitcoin ETF in the near future. However, if the crypto world exerts the necessary pressure, and increases the retail demand, in the future it will be approved.