During a CNBC broadcast, Chris Hempstead, director of institutional business development at IndexIQ, argued that if market and investor demand increases in favor of Bitcoin (BTC), the SEC could approve a Bitcoin ETF.
The crypto ecosystem has a long time fighting for the approval of a Bitcoin ETF by the SEC. However, the body’s response has always been negative.
For this reason, various executives met during a CNBC broadcast to discuss the likelihood that the United States Securities and Exchange Commission (SEC) will grant a license for a Bitcoin ETF.
Recall that, in January 2019, Wilshire Phoenix’s application was first filed with the SEC. However, despite amending his request six times in 13 months, the SEC responded with a resounding no. The justification behind the decision was concerns about market manipulation.
Greater retail demand is necessary for a Bitcoin ETF!
In full debate, Chris Hempstead predicted that a Bitcoin ETF will reach the crypto ecosystem when retail demand grows.
“I doubt that this is the drop that broke the glass. I believe that everyone will continue to listen to the comments and clarifications of the SEC … and will continue to address the issue. ”
Chris Hempstead for CNBC.
However, it is important to note that Hempstead clarified that he does not predict “No significant change in the SEC’s decision in the near future.”
In addition, Hempstead predicted that stablecoins and other cryptocurrencies will be regulated as the sector grows and matures. He argues that people will gain a better understanding of the operation of distributed ledger (DLT) technology.
And it is that many people still do not know the world of cryptocurrencies, so retail demand remains low. In fact, as proof of this, Dan Wiener, president of Adviser Investments, flatly rejected the notion that there is a need to use BTC.
“Do we really need Bitcoins? I am not a drug dealer. I don’t care about moving money … We have many, many ways to move money, I don’t know if we need to be able to hide ourselves or our identities. ”
Also, Nick Colas, co-founder of DataTrek Research, said in January that the odds of a Bitcoin ETF being approved this year were 10%.
So, Colas pointed out that “First we will see a Central Bank cryptocurrency before seeing a Bitcoin ETF.”
Experts seem to agree that we will not see a Bitcoin ETF approved in the near future. However, if the crypto world exerts the necessary pressure and increases retail demand, in the future they may be approved.