Hope Springs Eternal: The Bitwise Perspective
In a recent chat worthy of a tech-savvy campfire, Hunter Horsley, CEO of Bitwise Asset Management, expressed a remarkably sunny outlook amidst the regulatory haze surrounding crypto exchange-traded funds (ETFs). Speaking with Matt Hougan, the company’s global head of research, during an interview with Bloomberg UK on August 15, Horsley shared insights that could make even the most hardened crypto skeptic raise an eyebrow.
The SEC’s Game of Patience
Bitwise, a veteran in the ETF application battlefield, submitted its latest proposal to the U.S. Securities and Exchange Commission (SEC) back in January. But in a twist that could be straight out of a suspense thriller, the SEC decided to hit the pause button earlier this week, delaying the decision on not just Bitwise’s proposal but a couple of others too. The latest deadline for a final ruling? October 13. Mark your calendars, folks!
Reasons for the Wait
So, what’s up with these hold-ups? Horsley noted that the SEC has been relatively transparent about the concerns behind the delays, providing insight like a well-prepped contestant on a game show. Even though the journey to ETF approval resembles a tortoise race, he pointed out significant strides made over the past year, pumping optimism into the digital air.
A Wave of Progress in the Crypto World
Echoing this optimism, Hougan highlighted some game-changing developments in the crypto realm. Firms such as Susquehanna are throwing their hats into the trading ring, while improved market mechanics—think of better arbitrage and spreads—are making the playing field more inviting. This isn’t just a fairy tale; crypto custodians now sit beneath the safety of insurances crafted by non-other than Lloyd’s of London. As far as Hougan sees it, a significant chunk of the SEC’s concerns are being addressed faster than a cat on a hot tin roof.
Unlocking Wealth with a Bitcoin ETF
As it stands, crypto ETFs already have a foothold across the pond in Europe. But the U.S. holds the heavyweight title in this growing arena, and there’s widespread anticipation that a U.S. approval could unleash an avalanche of institutional cash. Hougan likens this potential shift to the groundbreaking introduction of ETFs for gold, hinting that the ripple effects could open up uncharted territories of wealth.
The Financial Advisor Dilemma
A Bitcoin ETF would be a game-changer for financial advisors—a crowd that manages half of the U.S.’s wealth. Currently, accessing the crypto market feels like trying to find a unicorn at a petting zoo. Hougan’s prediction? A Bitcoin ETF could finally present these advisors with a golden ticket to the crypto amusement park.
The Awaited Holy Grail or Just Another Mirage?
The crypto community is brimming with anticipation, viewing the approval of ETFs as a beacon of hope for broader acceptance of cryptocurrencies. For Bitwise, their proposed ETF seeks to track the Bitwise HOLD 10 Private Index Fund, which includes a diverse mix of ten cryptocurrencies. So, as we count down to October 13, the question looms: will we finally welcome the holy grail of crypto investments, or will we face another round of delays?
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