Only a Matter of Time Before SEC Approves Bitcoin ETF: Tech VC

Journalist:
David Hundeyin @DavidHundeyin
August 5, 2018

The market is rapidly approaching the point of acceptance for a bitcoin ETF, and the Securities and Exchange Commission (SEC) will eventually approve an ETF in the near future. This is the opinion of Fatfish Internet Group CEO, Kin-Wai Lau, speaking to CNBC last week.

According to Lau, what the market is experiencing is a “second wave rally” for bitcoin and cryptourrencies, a strong wave of demand driven by institutional investment entry and adoption. This he said, is generally a positive sign for early adopters and people with an interest in the sector. Going further, he also stated that the likelihood of the SEC approving a crypto market ETF is more a function of what organisation will successfully convince the SEC that it has the necessary tools to float an ETF.

He said:

“I think it’s a matter of time before we see the SEC approve an ETF. It’s just a matter of which organisation will be able to come out with comprehensive tools in terms of monitoring, surveillance, and ability to liquidity. there is a range of tools that need to be equipped, but it’s also readiness of the market. We’re not far away, maybe a couple of months away from the market accepting an ETF product. I think that’s what the SEC will be looking at.”

In Lau’s opinion, boosted bitcoin demand is being driven primarily by organic demand from everyday people around the world – a pattern that he says will not change in the run-up to the end of the year.

Responding to a question about what markers investors should be on the lookout for in terms of predicting bitcoin price movements, Lau stated that adoption, and not ETFs or other ‘abstract’ market instruments is what will substantially impact the asset price.

In his words:

“Adoption is what is driving the demand on ground. It’s being used widely in many countries and a lot of jurisdictions are starting to regulate it and approach it with a cautious but optimistic approach. That’s generally a couple of factors that will affect regulatory interest. It is geared up for a rally toward year end.”

CCN earlier reported that Crescent Crypto CEO Ali Hassan estimated the time frame for SEC approval for a bitcoin ETF at just about a year and a half from now.

This comes just a week after investment firm VanEck responded to the SEC’s concerns over crypto ETFs in a letter published on the agency’s website.

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Last modified (UTC): August 5, 2018 19:51

Tags: bitcoin etf
David Hundeyin @DavidHundeyin

I am a busy Nigerian writer, journalist and writer with an interest in tech and finance. When I'm not contributing to CCN and traveling around Africa, you can catch me contributing to CNN Africa, or in the writers room at 'The Other News', Nigeria's weekly answer to 'The Daily Show' with nearly 2 million viewers. My work on 'The Other News' was featured in the New Yorker Magazine, and that was then cited in the Washington Post so I'm not sure that counts as a feature but I'll definitely mention it too! I have been nominated by the US State Department to take part in the 2019 Edward R. Murrow Program for journalists under the International Visitors Leadership Program. I also like hamsters. You can reach me on Twitter at _David_Hundeyin