We heard this story for a couple of years, about having a Bitcoin ETF approved in the US for a while. The SEC has not yet approved any in its own territory so far.
Headlines of crypto news love to have momentum when this might happen! A clickbait for their viewers to read the article and get some traffic to their site.
What does that mean for the market for Bitcoin ETF approval?
A lot of liquidity in the market by investors. This will translate into an increase in the Bitcoin price a few weeks after.
Not the reality as I write this post!
Why the SEC has not yet approved one?
I believe it is simply the dominance of the US currency in the world. They don't want direct competition in the market with the acceptance of Bitcoin in its own territory.
Maybe as well a lot of pressure from lobbying and banks who want a portion of the pie. They want to offer their client exposure to Bitcoin as well, for their own profit.
A lot of folks think the BlackRock ETF will be approved because it is a giant in the financial world. At a certain point, the SEC will not have a choice to provide clarity and accept a Bitcoin ETF.
People love crypto, and to have exposure to Bitcoin without having to manage the private keys is cool. To have securities about crypto, which you can purchase through the stock market, is fantastic for a lot of investors.
I believe it is a game of patience!
In Canada, we already have a Bitcoin ETF
Buying Bitcoin and Ethereum on the stock market. It is already an option in Canada for a while as easy with one button click...
We take this for granted without thinking. In the US is not yet a reality!
Politics differs between both countries, at least Canada seems more open to crypto. Hopefully, the tone will change in the US for approval filled by BlackRock.
The SEC needs to change its mindset
The SEC cannot be in a fighting mode constantly about the crypto sphere. Instead, they need to provide clarity for investors and facilitate them to invest in the crypto ecosystem.
- Why spend energy fighting, crypto exchanges with old laws in place?
- Refuse all the applications for crypto ETFs like Bitcoin and Ethereum.
- Cannot provide clarity if an asset is a security or not.
Instead of working alone in their corners, they need to change their mindset to bring crypto into their territory.
Why keep going on this path?
People and businesses want to invest in crypto!
Clarity will provide liquidity in the market and more investors will feel confident to invest in crypto
I know this is already the reality in Canada having a Bitcoin ETF! Now we need to send a good vibe of energy to bring this to the US.
We need to have more investors and liquidity in the market. People want to expose themselves to Bitcoin without worrying about how to manage a private key.
Have a wonderful and blessed day.
