The conversation surrounding a crypto ETF has all but died down, however, at one point it was a case of do or die for most people within the crypto space. Months on from the rejections and delays we’re still in limbo, waiting for a decision from the SEC, however, do we really need one? (Probably not)
Tyrone Ross Jr. Managing Partner at NobleBridge Wealth Management Services has put across the popular opinion that a crypto ETF isn’t actually needed.
In an interview with Naomi Brockwell, Ross Jr states that he isn’t a fan of an ETF adding that he's a “believer in the original ethos of crypto, which is everyone holds the assets themselves, individually”.
"We don't need an ETF" says Wall Street financial advisor @TR401. We talk about why he believes holding actual bitcoin is more important than an ETF, and other unconventional perspectives he has that you don't commonly find on Wall Street. https://t.co/pEQDujCqI7 pic.twitter.com/8tR21j0mlM— Naomi Brockwell (@naomibrockwell) January 2, 2019
Offering a somewhat unconventional Wall Street perspective, Ross Jr, argues that while an ETF may bring validation and a potential rise in prices, its “dangerous” to allow investors to jump into an asset they don’t fully understand, adding that it goes against the very fundamental ideals of cryptocurrency:
“In an asset that is supposed to be decentralized and about being peer-to-peer and personally banked that lets us own the actual asset I think the issue for the financial services is that they don’t want people to teach people to do that ... It's layering on nonsense just simply so Wall Street can make money”
Many within the crypto sphere seem to agree with Ross Jr:
Enjoyed that, ETF could be a rotting apple core.— Vincenzo Minyardi Casablanca J3🔑 (@vinswalla) January 2, 2019
Or the ETF exists so you can just have it backed by a commodity say Gold (GLD) or oil and you don't actually have to keep it in a vault. But with BTC, you don't really have that problem. If an institutional investor wants to buy BTC, they are smart enough to have a cold wallet.— Felty (@Felty256) January 3, 2019
As of writing, we’re still waiting on the SEC to make a decision on a prospective crypto ETF, which will supposedly come in later February. In the meantime, it appears the crypto space has fallen out of love with the idea, and with just cause too. The consensus seems to be that the more this nascent industry can support itself, independently of traditional financial institutions, the better.