The crypto market may finally see the approval of Bitcoin’s ETF, although regulators need more time.
Law Decoded: Pushing the Legal Limits, July 10 to July 17
„We believe that a Bitcoin ETF is a question of when, not a question of if,“ Michael Sonnenshein, the managing director of Grayscale Investments, told Morgan Creek Digital co-founder Anthony Pompliano in a July 15 interview. „The regulators have done a fantastic job of staying ahead of the curve in the overall digital currency asset class,“ he added.
Cryptospace moves fast
Explaining the speed at which the digital world of cryptomontages is moving, Sonnenshein described the clarity with which U.S. regulators had provided the industry with proactivity.
„There are indeed ways to work with regulators in the asset class within existing frameworks, but they are not yet ready to approve an ETF,“ he explained.
About 80% of ETH’s supply is qualified for staking, according to a ConsenSys report
Many failed attempts by a Bitcoin ETF
A Bitcoin ETF, which gives investors and traders access to Bitcoin in the major financial markets, has eluded crypto space many times over the past few years. The U.S. Securities and Exchange Commission (SEC) has denied numerous attempts at such a product by various companies.
„I think they’ve been quite explicit about wanting to see some dynamics within, letting the market mature a little bit more,“ Sonnenshein said of U.S. regulators.
Looking at examples, Sonnenshein added:
„Things like maybe a more global order book by Bitcoin, maybe things like exchange surveillance agreements, maybe a little more regulation and oversight in the different markets and places where digital assets are traded.
CFTC committee to hold remote meeting on DLT and digital currencies
Some of the reasons that led the SEC to reject previous requests for a Bitcoin ETF include the lack of evidence against market manipulation and confirmation of the size of the Bitcoin market, among other criticisms.