Lawyer: Bitcoin ETF Not Likely Because Of Government Shutdown

Lawyer Bitcoin ETF Not Likely Because Of Government Shutdown

A bitcoin exchange-traded fund (ETF) is not likely to happen anytime soon since the US government has shut down.

Bitcoin Exchange Traded Fund (ETF)

The last thing we heard about an ETF was that it got postponed until February this year. The Security and Exchange Commission (SEC) will decide on the 27th of February, but the can either decline, accept or postpone it again. Hester Pierce, a commissioner at the SEC, said that it could get approved today, but it could also take 20 years.

The chances for approval, however, is slim according to a lawyer. Jake Chervinsky, a lawyer at the Kobre and Kim law firm, suggested that it will not be approved. Chervinsky stated that the exchange-traded product as a concept is currently ”in trouble.” More specifically, he expanded on the issue, arguing that the cryptocurrency market might not be ready for an ETF as of yet.

The SEC chairman Jay Clayton agreed that the chances for approval are slim. Clayton noted that there must be better surveillance in cryptocurrencies before an ETF can be approved.

Bitcoin advocates have long desired an ETF approval, and the recent government shutdown in the US could lead to approval by default. Many on Twitter has proposed this idea, and Brian Cohen was eager to share his take on it.

Chervinsky, on the other hand, Tweeted that any hype around the regulatory change that comes from the shutdown is unnecessary. He replied that an approved ETF due to the government shutdown is anything else than likely.

The chase for bitcoin milestones and ETF’s continues

Even though an ETF might not get approved anytime soon, there are many more milestones within reach. The Swiss SIX Exchange has released a crypto Exchange traded product (ETP). The ETP in question is called the ”Amun ETP” and is a ”multi-cryptocurrency” product consisting of multiple different cryptocurrencies. Specifically, it is made up of varying parts of Bitcoin, Ripple, Litecoin, Bitcoin Cash and Ethereum. Will it pave the way for an ETF?

Traders and investors are also awaiting the launch of regulated physical Bitcoin futures from Intercontinental Exchange’s (ICE) Bakkt platform on January 24. Financial institutions such as Nasdaq and Boerse Stuttgart Group will also enter the market and will offer cryptocurrency related products.

One of the most recent news states that the digital exchange DX. Exchange is opening next week and will enable investors to trade with Nasdaq listed companies. The exchange will let its investors indirectly purchase company shares through their token-based platform.

Even though an ETF might be far away there are several other projects down the pipeline for bitcoin and cryptocurrencies.

Image Source: “Pixabay”

Leave a Reply

Your email address will not be published.