Opinion text from ICOBox, a start-up aimed at promoting blockchain through the sale of products via the initial currency services offer (ICO & # 39; s)
The Cryptomannan market did not do well in July last year, when the SEC refused the successive attempts of the Winklevoss brothers to have a traded fund (ETF). The news influenced the Bitcoin price and dragged it from the highest price of $ 8.300 to a low of about $ 6,000 (according to the Coinmarketcap tool data). The general community of crypto-coins reacted in a similar way when previous ETFs were refused.
The argument for an ETF of a digital asset is that if a Bitcoin ETF is created, a large number of institutional investors will enter the crypto-foreign exchange market, causing the asset price to rise. Theoretically, when something of this power is refused, it is only common sense for the community to be afraid and prices begin to fall.
On Wednesday, August 22, the Securities and Exchange Commission (SEC) has not denied one or two Bitcoin ETFs, but nine. However, this time the market seemed to stand still and not hesitate because another time an ETF was refused. In fact, the prices of Crypto-Coin rose slightly after the announcement. In essence, it can be said that a Bitcoin ETF is not as big as we thought. In fact, Bitcoin ETF & # 39; s refusal could be a good thing for criptomoeda.
As a reason for refusing an institutional vehicle to Bitcoin, the SEC stated that uncertainty and the possibility of market manipulation were the main culprits. There are many "strangers", at least for the time being. The fact that you get lost is that the ETFs themselves are a fairly new investment vehicle.
The first ETFs only came into being in the early nineties, when the S & P 500 Trust fund was consolidated into an "ETF" with the now famous "SPY" name. What's even more interesting is that Gold had its first ETF on the US stock markets only almost 13 years later in 2003 (Source: Investopedia). Bitcoin is still in its infancy compared to other globally known assets and raw materials. Thanks to the Internet, Bitcoin has surpassed availability, usability and much faster than all other assets in history.
Bitcoin does not need ETF to thrive. In fact, it seems that the general community may have limited knowledge about what an ETF would mean for Bitcoin. The introduction of an ETF for Bitcoin would put him on the same playing field with the biggest Wall Street giants, who almost all proclaimed their aversion and disbelief in their abilities. With this in mind, a collective number of shorts and the placement of negative derivatives could destroy the price of Bitcoin. Those who are in favor of a Bitcoin ETF seem to have the idea that all investment banks and derivatives traders will welcome it with open arms, but this is not true.
"The positive news about the Bitcoin ETF can temporarily increase the price of the cryptomeo, but no help is needed for the adoption of the cryptomeo," says Daria Generalova, co-founder of ICOBox.
Andreas Antonopoulos, considered the "godfather of Bitcoin" for his non-profit work on the ecosystem, also stated his dissatisfaction with a Bitcoin ETF. "It looks like we're going in the opposite direction that Satoshi proposed to go," Antonopoulos said during a question and answer program about his views on a Bitcoin ETF.
Regardless of your opinion on the decision of the ETF, it should be noted that the main reason why people even wanted to implement a Bitcoin ETF in the first place is that the Bitcoin price goes up. Although this can be temporary, the long-term effect can be detrimental to the price of crypto. Moreover, a Bitcoin ETF will not help with future adoption. Perhaps the focus of the entire cryptom community should, at least for the time being, not be on the implementation of the exact thing Bitcoin is against, but rather to promote its acceptance and return the financial power to ordinary people.