ETF or not ETF? That’s the question on everyone’s lips. Since the announcement of the proposed Spot Bitcoin ETF made by the behemoth BlackRockan investment fund with $10,000 billion in assets under management, the crypto sphere is holding its breath. If the ETF is accepted, capital could soon be pouring into cryptos. But the case is far from won, as explained by John Stark (not the Game of Thronesbut the other), a former SEC official.
ETF spot Bitcoin: BlackRock’s battle is far from won
Last June, the giant BlackRock had filed a request for a Bitcoin spot ETF to the SEC (Securities Exchange Commission). In concrete terms, this would mean a simple, regulated way for all traditional players to be exposed to the Bitcoin price. And to top it all off, this would oblige BlackRock to actually own the Bitcoins offered for sale. All of which could propel the BTC price to new heights, with the support of the immense resources of the market master headed by Larry Fink.
Except that the SEC has not yet accepted the famous ETF. It may postpone its decision several times until March 2024. A response is therefore unlikely any time soon. On the other hand, there are also chances of her refusing the ETF, despite BlackRock’s influence. Whoever says this isn’t just anyone. It is John Reed Starkformer SEC director, responsible for Internet regulation.
John Stark’s response is unambiguous. The SEC, as things stand, will not approve the ETF. There are a number of reasons why the SEC might not approve the ETF. These are listed in a press release by expert firm BetterMarkets:
« The bitcoin spot market has a history of artificially boosted volumes due to widespread manipulation and fictitious transactions, is highly concentrated, relies on a small group of individuals and entities to maintain the network. These aspects (…) make the proposed Bitcoin spot ETF extremely manipulable by bad actors, posing risks to investors and the interested public. »
Bettermarkets experts
We wouldn’t be surprised to see this type of argument repeated unchanged in Gary Gensler’s future speech rejecting BlackRock’s Bitcoin spot ETF… and all the others for that matter.
>> In the face of regulation, keep your cryptos safe: choose a Ledger wallet (commercial link) <<
The 2024 US presidential election could change everything
John Stark’s analysis is far from over, however, and the rest of his speech is decidedly more positive. For him, the treatment of Bitcoin and cryptos in general has become partisan over the years, which was not the case in 2017 typically. Now, we can simplify by saying that the Democratic Party, President Biden’s party, is against cryptos. And the Republican Party is for. Its emblematic figure, Donald Trumpeven hands full of ETH. Indeed, the U.S. presidential election, scheduled for late 2024, could play a crucial role in the evolution of crypto legislation in the US.
If the Republicans are elected, the SEC’s oppressive measures against crypto companies could come to a screeching halt. The SEC would confine itself to sanctioning fraud cases. And it would be far more receptive to the idea of accepting future Bitcoin spot ETFs.
Gary Gensler, the current SEC boss, would likely step down. And this one should be taken over by Hester Piercenicknamed the « crypto mom in the USA. A pro-crypto figure at the head of the SEC, which should facilitate the democratization of crypto.
Hester Pierce regularly expressed her disagreement to the measures taken throughout the year by the SECagainst the crypto ecosystem. The arrival in power of the Republicans in 2024 could therefore mean the start of a new wave of crypto adoption. That is, if they manage to win the election. Among the candidates in the running are Donald Trump and even Ron De Santiswho spoke at length in favor of cryptos and against MNBCs recently.
For peace of mind, equip yourself with a Ledger secure hardware wallet, there’s something for everyone. Your security is priceless (commercial link).