The price of Bitcoin exchange-traded fund (ETF) has reached a new all-time high as the United States Securities and Exchange Commission (SEC) finally approved of the key digital currency after eight years.
Although some analysts and industry figures remain skeptical of the approved product’s nature, namely ProShare’s Bitcoin Strategy ETF (BITO) along with Valkyrie Bitcoin Strategy ETF (BTF) being futures rather than the spot price. Nonetheless, the SEC’s recent approval has been hailed as a monumental moment in crypto history.
BITO’s listing on the New York Stock Exchange has also been considered a breakthrough as trade volumes exceeded even the most optimistic expectations. Although BITO has delivered a record-breaking volume on its first day, the price of BTF slightly dipped during launch.
In light of the latest developments, the crypto community ponders why the SEC silently approved of the digital currency after eight years?
The chairman of the SEC, Gary Gensler, who was previously noted for his positive view on digital assets has just proved his views on digital assets is far complicated than as it seemed. Gensler’s drive to categorize most crypto assets as securities to be regulated has led many in the crypto community to list him off as an ally.
The SEC’s move on letting futures-based Bitcoin ETF could be seen as a safe way for the sector to win over the financial system, and as a means for the SEC Chairman to not completely label himself as an enemy.
Brad Yasar, the founder, and CEO of EQIFI, a decentralized finance platform, highlighted two causes for the SEC’s approval of Bitcoin ETF. The first one he described is the initial pressure on the SEC to grant traditional financial institutions easy access to alternative investments. The second one he states is the install inertia as the regulatory agency simply had a hard time responding to the demands of a new product class.
Ryan Selkis, the founder of investment firm Messari, tweeted “The SEC is simply part of the cartel”, a hint at the common perception that the government and Wall Street figures have established a front against retail investors.
For eight years, the SEC has been rejecting or delaying the decision to multiple Bitcoin ETFs since the Winklevoss brothers first attempted to secure approval. Whatever changed the SEC’s decision on ETFs is likely to be a net positive for the adoption of crypto.