A lot of people expect Bitcoin ETF to clear its US SEC regulatory hurdle by Q1 2019. While, there’s still some time for the regulators to announce their decision, eToro’s CEO Yoni Assia believes Bitcoin ETF will not be around for some time at least.
Market Conditions and Nature of Crypto Industry making things difficult
Yoni Assia, who was near accurate in his visions in the past for the crypto industry, recently shared his thoughts at the Israel Bitcoin Summit which was held at Tel Aviv University this Wednesday. According to him, while the industry is still excited for the Bitcoin ETF to get an approval, both market conditions and the nature of the cryptocurrency industry makes it unlikely that the US SEC would give a green signal to a cryptocurrency ETF.
Following on from this, Yoni mentioned that the recent downfall in the crypto markets has lent credibility to the view that the cryptocurrency market is destined to fail and, as a corollary of that, lose people money.
“The people that said ‘crypto is a bubble, people are going to lose their money’ are now the smart people in the room because they were right”, said the eToro CEO. “Those people get credit [and can] delay things a bit further. So I think it’s going to be a while before we see an ETF but you never know.”
Assia also added that it’s really difficult to get the SEC to agree upon the way crypto industry and exchanges function. To quote him;
“The American capital markets, for the SEC, are already like a blockchain, they can monitor every single transaction that takes place. So when they look at crypto and all these exchanges spread across the world that doesn’t have control, and will probably never have control, they understand they can’t necessarily [prevent price manipulation] – and that’s a new paradigm for them.”
While Assia was bearish on the ETF, he was still pretty bullish on the cryptocurrency space. According to him, the world will see a whole new country adopting cryptocurrency in the near future and it will destroy that country’s banking system. To quote him
“It is inevitable that in the next five years we’re going to see at least one country where people flock to Bitcoin,” said Assia. “All the banks in that country [will] go bankrupt and the government has zero chance of reviving the banking system because there is no need for local currency or local bank.”
He also said
“But it’s inevitable that it will lead some governments to bankruptcy – so the fact that some of them are blocking it does make sense. But the average lifespan of a fiat currency is 30 years, so could all live to see fiat currencies disappear.”
While Yoni’s assumptions are quite tall, the position he is in, his comments cant be taken lightly. While the wait for the Bitcoin ETF continues, let’s keep fingers crossed that the application crosses the SEC barrier sooner.
Will the SEC duck the IPO this time as well or will the crypto industry gets it holy grail? Do let us know your views on the same.