Seemingly endless deferral
Notwithstanding these developments, Horsley remained positive, noting that the SEC has been relatively open about the reasons behind its delay and articulated the nature of its concerns.
Even though Bitwise has made multiple rounds of different ETF applications, he noted there has been a huge amount of progress in the last twelve months.
Horsley’s perspective was echoed by Hougan, who took stock of significant recent developments in the crypto sector such as the entrance of trading firm Susquehanna, improved arbitrage and new spreads.
He also noted that crypto custodians now have access to extensive insurance policies from Llyod’s of London and that the market more broadly is maturing. A large portion of the SEC’s concerns have thus been solved, he claimed.
Opening up crypto to a huge segment of US wealth
While several crypto ETF and similar investment vehicles already exist in Europe, most of the expectation globally rests on the U.S. greenlighting such products. Hougan weighed in on what he believes will be the likely impact of approval:
“A key aspect to a Bitcoin ETF in the U.S. is that it unlocks the financial advisor marketplace. So far crypto has focused mostly on retail investors […] or institutional investors […] Half the money in the U.S. is managed by financial advisors, and right now it’s very difficult for them to access that market.”
With the SEC continuing to delay over multiple ETF proposals, many in the community await their prospective launch as a potential “holy grail” that would herald the widespread adoption of cryptocurrencies as a regulated and passive investment instrument.