The market is rapidly approaching the point of acceptance for a bitcoin ETF, and the Securities and Exchange Commission (SEC) will eventually approve an ETF in the near future. This is the opinion of Fatfish Internet Group CEO, Kin-Wai Lau, speaking to CNBC last week.
According to Lau, what the market is experiencing is a “second wave rally” for bitcoin and cryptourrencies, a strong wave of demand driven by institutional investment entry and adoption. This he said, is generally a positive sign for early adopters and people with an interest in the sector. Going further, he also stated that the likelihood of the SEC approving a crypto market ETF is more a function of what organisation will successfully convince the SEC that it has the necessary tools to float an ETF.
“I think it’s a matter of time before we see the SEC approve an ETF. It’s just a matter of which organisation will be able to come out with comprehensive tools in terms of monitoring, surveillance, and ability to liquidity. there is a range of tools that need to be equipped, but it’s also readiness of the market. We’re not far away, maybe a couple of months away from the market accepting an ETF product. I think that’s what the SEC will be looking at.”
In Lau’s opinion, boosted bitcoin demand is being driven primarily by organic demand from everyday people around the world – a pattern that he says will not change in the run-up to the end of the year.
Responding to a question about what markers investors should be on the lookout for in terms of predicting bitcoin price movements, Lau stated that adoption, and not ETFs or other ‘abstract’ market instruments is what will substantially impact the asset price.
In his words:
“Adoption is what is driving the demand on ground. It’s being used widely in many countries and a lot of jurisdictions are starting to regulate it and approach it with a cautious but optimistic approach. That’s generally a couple of factors that will affect regulatory interest. It is geared up for a rally toward year end.”
CCN earlier reported that Crescent Crypto CEO Ali Hassan estimated the time frame for SEC approval for a bitcoin ETF at just about a year and a half from now.
This comes just a week after investment firm VanEck responded to the SEC’s concerns over crypto ETFs in a letter published on the agency’s website.
Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!