Those watching the cryptocurrency space will be well-versed in the many rounds regarding a potential cryptocurrency ETF. However, a lawyer is now suggesting that a Bitcoin ETF would have a ”10% chance of approval” if the decision were made today.
The SEC recently postponed an ETF decision
This news comes following the SEC’s announcement that it will postpone its upcoming decision on the SolidX VanEck Bitcoin ETF. Moreover, the commission noted that the decision might not come before February 27th of next year.
Furthermore, this is not the first time that a decision on the matter of a cryptocurrency ETF has been delayed. As a result of this, those eagerly awaiting the SEC’s approval are understandably becoming increasingly irritated.
Nevertheless, it is far from granted that the SEC will green-light the VanEck Bitcoin ETF come February. Recently, 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.
”When we last discussed the ETF on September 20, the SEC had just stated its ’grounds for disapproval under consideration.’ The goal of that step is for the SEC to explain all the reasons why it might deny the ETF so the sponsors & the public can respond to them all,” Chervinsky noted in a tweet.
He also proposed that the Winklevoss twins-led ETF (the SolidX VanEck Bitcoin ETF is spearheaded by the Facebook-famed duo now behind the cryptocurrency exchange ”Gemini”) might lead to the most formative ETF decision.
The Winklevoss ETF is ”the most important” ETF
”And the Winklevoss appeal denial is the most important SEC decision because it came straight from the Commissioners,” Chervinsky added in a later tweet.
Furthermore, Chervinsky also mentioned issues of potential market manipulation, as well as a lack of jurisdiction over cryptocurrency exchanges. These factors all play into his assertion that SEC approval for a cryptocurrency ETF might wait.
”Here’s my prediction, with a big disclaimer. *This is not in any way meant as advice.* Don’t even think about trading on this. I have no idea how the ETF decision will impact the markets anyway. Okay: If the deadline were today, I’d give the ETF a 10% chance of approval.”
Image Source: “Flickr”
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.