The SEC has repeatedly delayed decisions on three Bitcoin ETF proposals from Bitwise Asset Management, VanEck/SolidX and Wilshire Phoenix. Some analysts believe that the approval of Bitcoin ETFs can help legitimize cryptocurrencies and attract more investors, driving market growth. However, others argue that Bitcoin does not need an ETF, as investors can easily obtain and store Bitcoin already. Chapwood Capital’s Ed Butowsky even stated that Bitcoin does not meet the definition of a security and has no underlying value.
Bitcoin ETF was expected to change mainstream finance’s view of Bitcoin
Many analysts have expressed that the approval of a Bitcoin ETF could effectively contribute to the legitimization of cryptocurrency. Once SEC approves a Bitcoin ETF, it would mean the mainstream finance industry acknowledges Bitcoin to some extent. This would boost public confidence in Bitcoin and attract more investors and funds, bringing new and huge growth opportunities to the cryptocurrency market.
Bitcoin can grow without an ETF
Even without being approved as an ETF, Bitcoin’s growth has been driven by the development of blockchain technology. With increasing global participation, consensus on blockchain and Bitcoin is more widely accepted. Bitcoin could still flourish without an ETF.
Bitcoin does not meet the SEC’s definition of a security
According to Chapwood Capital’s Ed Butowsky, “Bitcoin is not a security. The SEC’s definition of a security requires that the traded item represents something else that has potential value. Bitcoin has no potential value. It’s not real.”
A Bitcoin ETF is not necessary
Duke Law School professor Lee Reiners told the SEC that a Bitcoin ETF is not needed. He argued that investors can easily obtain and store Bitcoin since it is a digital asset. He also noted the market is rife with fraud and manipulation, with no real price discovery.
The SEC has repeatedly delayed decisions on Bitcoin ETF proposals, with some arguing an ETF is unnecessary or Bitcoin does not qualify as a security. Regardless of SEC approval, Bitcoin growth is likely to continue driven by increasing blockchain adoption.