During an interview with CNBC Crypto Trader, Mark Brady, an ex-ETF builder of Blackrock, stated that the cryptocurrency community would probably not see a Bitcoin [BTC] ETF by the end of this year. Brady also said that from the standpoint of mass retail acceptance, an ETF is very important to the cryptocurrency ecosystem.
This is because an exchange-traded fund is basically a container which allows the customers to put capital into different underlying assets. These assets may be difficult for an average retail investor to get exposure to, stated Brady.
The ex-ETF builder continued to say that a “good example” for such exposure would be fixed income investments. According to him, a fixed income is traded in normally large notional values, while an ETF allows for a retail investor to get exposure to cryptocurrency on a much smaller size.
He went on to state that a Bitcoin ETF wouldn’t be the reason for the institutional investors to invest in cryptocurrency, as there are more systematic pieces in the ecosystem which need to be in place. This includes solutions such as custody before true institutional investors would start participating, stated Brady. Notably, the beginnings of such solutions have already been seen in technologies such as Coinbase Custody.
“I don’t really foresee any Bitcoin market being regulated by the year-end and the fragmentation of liquidity means that you are unlikely to see one market have large dominance over the overall trading volume of Bitcoin.”
Furthermore, he spoke about his perspective on the dissent published by the U.S Securities and Exchange Commissioner, Hester Peirce. Brady stated that there is infighting clearly occurring in the SEC regarding the approval of the Bitcoin ETF and that Peirce wrote a very nice piece outlining the community’s opinion. He said that it is “very unlikely” to get a Bitcoin ETF by the end of 2018. He further stated:
“But I think broadly speaking when you are talking about ETFs, you talk about the ecosystem and I have mentioned before that lack of qualified custodian in the ecosystem and I think until there is a regulated exchange with proper governance, there is a variety of custodian solutions. You’re not going to see an ETF approved by them.”
Hsan Asum, a Youtuber commented:
“ETF denied is a loss for US, every country who accepted crypto will flourish and US will be too late catch up.”
T2, another Youtuber commented:
“BTC is decentralized. BTC doesnt need ETFs. ETF will only lead BTC to centralization. Alots of people just dont get it”
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