Nick Colas, co-founder Datatrek Research: You’ll see a central bank cryptocurrency before you’ll see a Bitcoin ETF

The United States Securities and Exchange Commission (SEC) last week made another denial of Wilshire Phoenix’s Bitcoin exchange-traded fund (ETF) proposal. Nevertheless, Wilshire Phoenix has responded by saying they were very disappointed by the SEC’s ruling, emphasizing that it went to great lengths to ensure compliance with the SEC’s expectations.

Wilshire Phoenix slams SEC for Bitcoin ETF rejection

Wilshire Phoenix submitted the United States Bitcoin and Treasury Investment Trust to the SEC in January 2019. The firm described the fund as providing investors with exposure to Bitcoin in a manner that is more efficient, convenient, and less volatile than purchasing stand-alone Bitcoin.

Although the company made six amendments to its application in 13 months, the SEC rejected Wilshire Phoenix’s application on February 26 on the grounds of market manipulation and investor protection.

Wilshire Phoenix said:

“We made every effort to get the SEC’s attention on this important issue, including undertaking extensive analysis that was made available to the SEC staff, submitting key data, and offering to provide additional information to facilitate the listing of a much needed regulated Bitcoin-related ETP in the United States. Unfortunately, the Order shows that all of these efforts did not receive the SEC’s full attention.”

Even so, market commentators struggle to believe that this is the end of the long-awaited path.

You’ll see a central bank cryptocurrency before seeing see a bitcoin ETF

Chris Hempstead, director of institutional business development at IndexIQ, said:

“I doubt very slowly that I tried going to be the last straw. I think everyone will continue to listen to the feedback, and the notes from the SEC, what their comments are, and they will continue to address it.”

If market demands and investors end up offering metrics that are beneficial to bitcoin, the SEC will likely look at the applications and may draw a different conclusion.

He said:

“They’ll probably take another look at it and have different kinds of considerations. I don’t think the last straw, but I don’t predict any significant changes from the SEC’s decision shortly.”

DataTrek Research co-founder, Nick Colas, once said the percentage of Bitcoin ETF approved this year was 10%:

“You’ll see a central bank cryptocurrency before enlight see a Bitcoin ETF.”


Nick Colas, DataTrek Research co-founder

And CBDC can appear as a tethered digital currency to the U.S. dollar, which could make for frictionless virtual transactions, but, in many ways, the market already has that in place.

Dan Wiener, the chairman of Adviser Investments and the senior editor of The Independent Adviser for Vanguard Investors, said:

“People use Venmo right now. They can move their money around. It’s not that big a deal. Do we need Bitcoin? I’m not a drug dealer. I’m not worried about moving money. More critical is blockchain technology, how businesses are using Blockchain. Bitcoin or any of these other coins are just a manifestation of technology.”

Bitcoin has risen to over $ 9,000 this year after cooling off in late 2019. Bitcoin investors, including cryptocurrency investor Michael Novogratz, have said that Bitcoin could reach an all-time high in 2020.

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