ETF Issues Are Overhyped, According to Vitalik Buterin
Ethereum Founder, Vitalik Buterin has stated that there has been unnecessary emphasis on Bitcoin and Ethereum ETFs, saying although the ETFs may help pump price, campaign for mass adoption should be given much emphasis because it has long-lasting effect on cryptocurrency.
Vitalik who’s of the opinion that shops and digital commerce need to start accepting cryptocurrency sees hope in the perspective than in the ETFs which is causing unnecessary havoc in the cryptocurrency space.
“I think there’s too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores. The former is better for pumping price, but the latter is much better for actual adoption.”
SEC Disapproval Of Winklevoss Brothers’ Application
On the 27th of July, cryptocurrency market witnessed a drastic downturn which most likely be a reaction to the United States Securities and Exchange Commission’ (SEC) decision to turn down Winklevoss brothers’ application for a Bitcoin exchange-traded fund (ETF).
Although, crypto market already recovered, the news held the market for hours, making people think the end of crypto was signaled.
There is A big Difference
It is worthy to note that, according to our diary, the bitcoin ETF proposed by the Winklevoss brothers is not the same with the bitcoin ETF by investment firm VanEck and financial service company SolidX, which many people are discussing in the cryptocurrency space.
VanEck and SolidX made known that they applied to the SEC to get approval to kickstart what could be seen as the first bitcoin-based ETF. Responding to this request, SEC demanded comments on the request, interestingly, over 100 comments have been received, and SEC may respond to it any moment.
The Winklevoss bitcoin ETF was according to SEC rejected because the application is not “consistent with the requirements of the Exchange Act Section 6(b)(5), in particular the requirement that its rules be designed to prevent fraudulent and manipulative acts and practices.”
Crypto Community Is Calm.
While SEC’s decision has caused uproar in the crypto community, almost all investors keep on calming but those who may be scared, saying the decision by SEC is nothing but a fume that will soon go into obscurity.