Kraken CEO Predicts SEC Will Soon Approve Bitcoin ETF
Kraken CEO Dave Ripley attended an interview at Fox Business. Speaking to the media, he shared his optimism regarding the approval of a Bitcoin spot ETF in the USA regardless of the delays. It is important to note that Ark Invest CEO Cathie Wood recently told Bloomberg that SEC was going to approve a host of Bitcoin spot ETF applications withstanding the delay in decision.
Ripley agreed with the assertions made by Ms. Wood earlier and maintained SEC has a record of being unpredictable but the matter of Bitcoin spot ETF approval is inevitable.
Kraken is one of the biggest crypto exchanges operating out of the USA and it aired a positive stance towards Bitcoin spot ETF. The firm consulted financial firms on the matter of reference rates when they were filing for an ETF application for review at SEC. Ripley maintained that SEC continues to maintain an air of secrecy around the matter.
At the same time, the agency has cashed in the legally allotted time extension to finalize the matter. Meanwhile, Kraken CEO opines that one of the applications in the pipeline is likely to come through before the end of 2023.
Canada, EU and UK have Already Listed Bitcoin Spot ETFs
While the process of spot ETF approval for Bitcoin is moving at a sluggish pace in America, there are other jurisdictions such as EU, UK, and Canada that have already listed and approved Bitcoin and Ethereum spot ETFs. The proponents of crypto spot ETFs have criticized SEC for its hesitance on the matter claiming that it hinders financial innovation.
On the other hand, SEC has continued to dodge the matter citing suspicion of manipulation and illegal trading practices. Major firms that have applied for a Bitcoin spot ETF application include BlackRock, Ark Invest, Fidelity, Valkyrie, Grayscale, and SkyBridge Capital among others.
Meanwhile, CFTC granted permission to Coinbase for dealing for enabling crypto derivative trading services. The next big decision in this trend is going to be the verdict on the matter of Bitcoin spot ETFs.
Under its new license, Coinbase is set to offer crypto futures contracts. It is worth noting that futures contracts are trading instruments that allow investors to purchase or sell cryptocurrencies at a predetermined data based on projected price.
Coinbase has updated that it has gained approval from National Futures Association (NFA) that enables the firm to operate as Futures Commission Merchants or FCM.
When it comes to the investors at large in the crypto community, the stance regarding Bitcoin spot ETF is mixed. The supporters of the claim are bullish on the approval. To this effect, analyst Tom Lee head of research at Fundstart projected on CNBC that the finalization of Bitcoin spot ETF application will have a trending impact on the price and demand dynamic of Bitcoin.
He claimed that in case the daily supply of Bitcoin could bolster demand in comparison to supply that could lead to a high price return as big as $150K or even $180K per unit.
On the other side of the spectrum, there is also an antagonistic view on the matter. A recent report published by Morningstar stipulated that crypto ETPs standard deviation in comparison to Bitcoin spot price and S&P 500 is up to 4.3% per day. It means that crypto ETPs are subjected to massive volatility namely 3 times higher than spot Bitcoin prices and 4 times greater than traditional equity markets.
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