Bitcoin ETF countdown, Yes or No?

The US Securities and Exchange Commission (SEC) proposed a final decision on the Bitcoin ETF to enter the countdown.

If only the only remaining Bitcoin ETF proposal applicant, Bitwise Investment, is approved, this will be an important milestone in the history of Bitcoin.

"The SEC had to make a final decision before Monday. At this juncture they should have no more reason to postpone the decision of the Bitcoin ETF proposal again," said Bitwise researcher Matt Hougan.

The SEC postponed three Bitcoin ETF proposals in mid-August this year, with the Cboe BZX exchange withdrawing the VanEck/SolidX proposal on September 13.

SEC Chairman Joy Clayton has said that bitcoin needs to be better regulated before entering mainstream exchanges, and that it is very difficult for investors trying to profit from cryptocurrency assets to achieve "price discovery."

However, Matt Hougan believes that “the bitcoin market has been growing in the past two years. The concerns of the SEC on the Bitcoin ETF are mainly reflected in two aspects, one is the security of cryptocurrency custody, and the other is the prevention of cryptocurrency. The protection measures of market manipulation, I think these problems have begun to be solved."

“Two years ago, the bitcoin market was not fully regulated. The custodian of the insurance purchase was not secure for the user’s encrypted assets. Today, cryptocurrency exchanges like Coinbase are starting to try and Lloyd’s Insurance Cooperation, with the help of the traditional insurance industry to provide security for cryptocurrency investors," he said. “Two years ago, there were no regulated cryptocurrency exchanges. Today, New York regulators are beginning to regulate the entire market by issuing licenses, and it also means that cryptocurrency exchanges are following traditional financial institutions and operating at high standards. More important Today, the cryptocurrency market has more than $20 billion in daily trading volume and regulated futures trading."

Matt Hougan added: "The problem now is that large institutional investors now have a safe and reliable way to buy bitcoin through private foundations. The target customers of these foundations are often high net worth investors, but retail investors do not. I think Bitcoin ETFs can change this landscape. Bitcoin ETFs allow retail and individual investors to buy Bitcoin in a safe and easy way, and financial advisors can provide services to retail investors."

The SEC said in its previous Bitcoin ETF ruling that most of the proposals failed to prove its 'prevention of fraud and manipulation” and “protecting investors and the public interest.” The overall structure of the bitcoin market has been criticized. Citing academic research findings, it is easy to manipulate market behavior when there is a minority holding a share of an asset that reaches the dominant market. Recently, Token Analyst data shows that it is currently held in the wallets of eight major exchanges. Bitcoin (nearly 1.2 million bitcoins, worth about $10 billion), which accounts for 7% of the total bitcoin supply, has the most bitcoin in the coin wallet, followed by the currency and Bitmex.