Expert opinions: is an ETF crucial for crypto?

29 Jul, 2018
by Will Heasman
Expert opinions: is an ETF crucial for crypto?

Discussions of a potential Bitcoin ETF are rippling through the crypto community, talks of rejection, SEC dissent and of hope relating to the upcoming proposals. But what exactly do experts think on the matter?

Recently the importance of a crypto ETF has changed from a potential boost to the market to a crucial factor in the longevity of Bitcoin and crypto in general, but are they as imperative as the community thinks?

Speaking to CCN, multiple experts have given their opinion on the matter.

For Micheal Vogel, founder of Netcoins, a virtual Bitcoin Kiosk, an ETF would legitimize Bitcoin further within the financial sector, particularly within wall street, allowing traditional traders a chance to jump in on the nascent market. Vogel also believes that this would benefit regulators, as correlations form between traditional investments and Bitcoin. Vogel also speculated on a potential price boost:

“A large ETF would likely have a significant impact on bitcoin prices as well, not just due to trading volume but simply because of the volume of bitcoin that it would remove from the liquid trading market (because the BTC would need to be permanently held by the ETF corporation)”

Contrastingly, Alena Vranova, the founder of hardware wallet Trezor, has a differing opinion on ETFs. For her, a Bitcoin ETF isn’t necessary or crucial for the future of Bitcoin. Although she agrees that more money will inevitably come in from new and accredited investors:

“Everyone who wants to hodl on, please make sure your bitcoin is safe against hackers, because their interest will skyrocket too. I’d recommend to abandon any custodian service, set up some of the proven hardware wallets (TREZOR or Ledger), set up a non-custodian multisig wallet (such as CASA) and read Pamela Morgan’s book on crypto asset inheritance.”

Partner at CryptoCrest, Dana Coe, also disagrees with the magnitude of importance being placed upon an ETF, stating that exchange-traded funds are just that: an asset traded on a listed exchange. Coe goes on to add that typically ETFs are SEC or CFTC regulated assets of which categories Bitcoin/crypto do not fall under.

Eyes are now fixed to September when the remaining ETF proposals will be decided upon by the SEC.

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Read more about: Bitcoin (BTC)


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