The hope of approving a Bitcoin ETF has been lingering for a while now. The hope of the approval was more prominent last year during the period the crypto market was experiencing its longest bear market in history. It was prominent during the period because a Bitcoin ETF approval was considered vital to the restoration of the crypto market back to the bull trend.
During the year 2018, the United States Securities and exchange commission rejected some Bitcoin ETF applications, as well as postponed its decision on some application as well. The rejections and postponements of ETF application dampened the hope of many crypto enthusiasts as well as affected the value of Bitcoin during the bear market.
Regardless, there was still hope of approval of Bitcoin ETF which was seen as vital to the restoration of the crypto market back to the bullish trend in 2019. Since the beginning of 2019, postponement and delays still continue to trail the approval of Bitcoin ETF, even as the first and second quarter rounds up, and the years divides into two.
Meanwhile, the Bitcoin ETF which is considered as essential for the bull trend of the crypto market has been proven wrong as not necessary for a bull trend to take place. The value of Bitcoin, after reaching its lowest ebb of the bear market around $4000, has seen over 230 percent increase since the beginning of the year. This has taken place without the need or help of a Bitcoin ETF.
This shows that the bull trend can take place without Bitcoin ETF, and development of the industry can equally take place without the approval of Bitcoin ETF. This makes Bitcoin ETF seem overrated in terms of impact on the crypto space. However, its introduction or approval is bound to aid the influx of institutional funds and aid the growth and development of the industry.
Approval Of Bitcoin ETF In 2019
A similar trend that trailed the Bitcoin ETF approval last year is equally trailing it this year. The indecisive stance of the US SEC has been the major issue plaguing its approval. The vanEck Bitcoin ETF application which was postponed in 2018 is still facing postponement. Likewise, the application of bitwise has equally been postponed.
In 2018, the reason cited for the postponement was the volatility of the crypto market and its process to manipulation. Other applications that have improved on the application such as the vanEck and the Bitwise application was postponed in March and May 2019 based on the institution of a proceeding on whether to approve or disapprove a proposed rule change. The new deadline for the SEC decision on venEck Bitcoin ETF proposal is August 19, and it can delay one more time for a final deadline of October 18.
The Unjustifiable Delay
While the approval still lingers, SEC commissioner, Hester Pierce, who is more passionate about Bitcoin ETF and the only dissenting SEC commissioner to Bitcoin ETF rejection out of the five commissioners, considered this unjustifiable. She noted in a recent event that the arcane behavior of the SEC toward cryptocurrency is counterproductive and that the ETF should have been approved already. Pierce further emphasized that the SEC attitude is a terrible one that stifles innovation while noting it could chase crypto business offshore in the united states.
As stated by ‘Crypto Mom’, Pierce, a SEC commissioner, the agency is stifling innovation while it is making an effort to preserve the traditional ways of doing things. And this is immensely not good for the United States and the crypto space.
However, the progress the crypto industry has seen which is devoid of a Bitcoin ETF has proven the industry can survive and flourish without it.
On the subject of its approval this year, the crypto industry might not see a Bitcoin ETF this year, pending when revolutionary minded commissioners that are not conservative are at the helm of SEC. Crypto friendly SEC commissioners like Pierce, increasing from one to three or four out of five would aid the attainment easily. Nevertheless, the approval is still subjected to time, as anything is possible.