Since its inception, the crypto market has always remained volatile. Bitcoin, being the largest cryptocurrency has dictated the direction that the market takes. However, many governments, central banks, and major financial institutions believe that bitcoin can turn into a viable investment asset after it is carefully and relatively regulated.
It is highly likely that the crypto market will integrate with the mainstream market in future. The integration will result in many investment opportunities for the investors to capitalize on. The growing interests in exchange-traded funds (ETFs) offer an excellent channel for Bitcoin to break into the mainstream market.
Nevertheless, there are several challenges that face the attempts to launch the first BTC ETFs. Since the cryptocurrency market remains largely unregulated at the moment, the U.S. Securities and Exchange Commission (SEC) is reluctant to authorize an ETF focused on the new and untested market.
Is SEC Changing their Stand?
In a podcast aired on November 24, SEC commissioner Hester Peirce said that she sees a future in the digital currency market and believes the launch of a future cryptocurrency ETF is ‘definitely possible‘. Although she added that those were her personal views and not of the SEC itself, it may signal the possibility of a Bitcoin ETF launch soon.
Peirce confirmed that there is ‘significant intellectual capital’ getting invested by institutional investors and exchanges towards the development of a Bitcoin ETF.
Peirce is one of SEC’s five commissioners who was appointed by the US president to manage the entire regulatory landscape environment for security investments in the United States. She first came to the limelight of the crypto community after writing a letter of dissent with regards to the SEC’s refusal to endorse the famed Winklevoss Bitcoin Trust ETF.
She expressed her belief that the other SEC commissioners had violated their remit by focusing on the underlying risk of Bitcoin instead of looking at the capability of the exchange to offset potential market manipulations within their involved product offering. Peirce also reiterated her belief that a conservative approach to handling the crypto phenomenon challenges could choke technological innovations in the United States.
The commissioner’s comments come in the midst of other analysts and experts questioning the sustained viability of cryptocurrencies. The cascading plunges in the crypto world have caused the total market capitalization of cryptos to slide to levels only seen in August 2017 increasing the doubts of this market’s long-term sustainability.