The SEC has several reasons to approve an ETF Bitcoin, but it is not yet clear how the Biden government will deal with the cryptomime market.
Joe Biden may nominate Gary Gensler, a former MIT teacher who taught blockchain classes, to take over the Securities and Exchange Commission. The news sparked optimism in the cryptomaniac market that he would be the best informed person about this new form of investment to chair the regulatory agency.
Gensler is not an advocate of all cryptomaps, however, it is worth noting that he has plenty of experience with the pros and cons of digital assets and blockchain technology.
If the appointment is confirmed, Gensler is likely to rush to approve a Bitcoin Exchange-traded fund (ETF), showing that the US wants to protect investors and put the country on an equal footing with the rest of the world.
Reasons that could be an impetus for the SEC to approve an ETF
The United States is lagging behind approval of an ETF related to the cryptomorph market. More than 20 ETFs already exist outside the United States, especially in Europe.
Therefore, the SEC needs to hurry to approve an ETF Bitcoin, so the Cryptosoft United States will be seeking to protect investors and put the country side by side with the rest of the world.
The Bloomberg news site recently conducted a Twitter survey to understand what investors think the SEC should approve of an ETF Bitcoin, the result being that nearly 80% of the 2,192 respondents said they believed the SEC should approve an ETF.
Bloomberg also found that 50% of the respondents would invest in an ETF Bitcoin.
ETFs have been doing well in Europe, for example in Sweden, the Bitcoin Tracker EUR was launched over five years ago. They are usually traded at small fees, thanks to the arbitration allowed by the stock creation / redemption process.
According to the SEC, the market for cryptomites in general is very vulnerable to manipulation and fraud, however, is becoming stronger with the arrival of large investors.
ETF can make market thrive
An ETF will accelerate the growth of this new market, giving even more transparency and promoting better surveillance in cryptomorphic brokers.
Traditional US investors pay high fees to invest in Bitcoin, they usually get a lot of funds traded in an over-the-counter market similar to closed-end funds.
The best known of these is the Grayscale Bitcoin Investment Trust, those who bought shares in the fund last year paid an average fee of about 18% more than the Bitcoin price. At an ETF, investors know they are paying a much closer price to the asset.
Investors like ETFs because they are convenient and easy, they don’t have to worry about digital wallet passwords, they just need to access the account at the brokers and they can easily buy, sell or just check the balance.
Thus, the SEC has several reasons to approve an ETF, but it is not yet clear how the Biden government will deal with the cryptomime market.