(MENAFN- B2Press) The U.S. Securities and Exchange Commission has delayed its decision on the bitcoin ETF, which was expected to be announced last week. New discussions have come to the fore regarding Bitcoin-indexed exchange-traded funds, which have remained on the top of the crypto agenda for a long time and can create a new demand of $ 50 billion, according to some. TURKEY - Recent optimism about the long-rejected Bitcoin-based exchange-traded fund (Bitcoin ETF) in the US has been stifled by the US Securities and Exchange Commission (SEC)'s decision to postpone it. The regulator, led by Gary Gensler, which is expected to announce its decision on the Bitcoin ETF application of Ark Investment led by Cathie Wood last week, announced that it would announce the decision later because a prosecution will be initiated after the backlog of Bitcoin ETF applications has been increasing for some time.
This development, combined with a series of claims, has sparked new debates over the Bitcoin ETF, the SEC's stance, and the future of crypto in the US. Operating with the motto of the door to crypto, Gate.io Turkey's Research Manager Sevcan Dedeoğlu evaluated the latest developments.
Generate $50 billion in new demand In addition to Ark Investment, famous and traditional portfolio management companies such as BlackRock are also applied to the SEC on Bitcoin ETF, triggering“investor optimism” in mid-June and bringing a 20% increase rally in Bitcoin. Reminding that those who think it is necessary to allow Bitcoin-based exchange-traded funds in the USA argue that this will create a new wave of investors, Sevcan Dedeoğlu said,“According to the fans, allowing the Bitcoin spot ETF has the potential to bring investment demand of more than $ 50 billion. However, JPMorgan disagrees, saying that this approval will not be transformative for the industry, as products like these have existed in Canada and Europe for years and do not generate massive investment inflows.“The SEC also seems to have been overshadowed by Gary Gensler's tough stance on crypto and these controversies.”
Companies optimistic, SEC cautious Gate.io Turkey's Research Manager Sevcan Dedeoğlu said that Cathie Wood, the CEO and investment chief of Ark Investment, who is well-known in the US investment world, is optimistic that the SEC will approve more than one Bitcoin ETF. Applications from companies such as Fidelity, WisdomTree, VanEck, and Invesco are currently waiting at the desk of the US securities regulator. In particular, the successive steps of large companies in this regard create an optimistic atmosphere in the market. The SEC is still cautious. According to some reports, it is said that the process may extend until 2024. Scenarios that relate the future of cryptocurrencies to the 2024 elections in the US have also begun to emerge. At this point, the expectation for 2024 may come true.”
Choices can be decisive Noting that John Reed Stark, one of the former SEC officials, claimed that the elections to be held in the USA in 2024 could reverse the policies on crypto, Sevcan Dedeoğlu concluded her evaluations with the following statements:
“It is stated that even current SEC Chairman Gary Gensler may change if the wind blows in favour of the Republican base in the 2024 elections. In his post on August 13, Stark notes that Republican voters are also focusing on different candidates, such as Ron de Santis and Tim Scott, in addition to Trump. Pointing out that the views on crypto in the USA have been very polarised since 2017, the former official states that everyone looked at crypto as“dangerous” at that time, and today, different opinion leaders from various segments share their extreme views.
“We see that the developments in the crypto world never stop; as Gate.io Turkey, we work for our users to access up-to-date information and new products and services. We offer one of the broad portfolios of more than 1,700 listed cryptocurrencies and cryptocurrency exchanges, supporting any development that benefits the industry.
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