Founder and CEO of investment firm BKCM Brian Kelly said that Bitcoin (BTC) exchange-traded funds (ETFs) are not necessary for the cryptocurrency ecosystem to grow, given that the coin is already available on government-regulated platforms such as Fidelity and TD Ameritrade.
Kelly spoke during interview with CNBC published on October 11, explaining:
“Firms like Fidelity and TD Ameritrade are starting to get into this space. Eventually, you’ll be able to buy Bitcoin with a regular brokerage account, or it will look like a regular brokerage account. So I’m less concerned about whether we need an ETF.”
He also noted that the Commodity Futures Trading Commission (CFTC) decision to define Ethereum as a commodity had a significant impact on the market. He said specifically:
“The CFTC’s comment that Ethereum is a commodity is huge for the market space. It gives us regulatory clarity. (…) It opens the door for institutions. (…) Everyone is concerned about what happens if they ban it (i.e. BTC). (…) The CFTC said: “we are not banning it yet, we will regulate it”and now investors can say “put them (cryptocurrencies) in my investment basket”.
General hope for the market
In May, Kelly also said that the upcoming distribution of the reward for mining a new block on the BTC network – the so-called halving, which is scheduled to take place in May 2020 – could help drive Bitcoin prices further upwards in the coming months.
However, as reported by the media on October 9, the US Securities and Exchange Commission rejected Bitwise Asset Management’s proposal to list a Bitcoin ETF. This is yet another rejection of such an application.
“The Commission rejects the proposed rule change because, as discussed below, NYSE Arca has failed to comply with its obligations under the Exchange Act, and the Commission’s Rules of Conduct demonstrate that its position is consistent with the requirements of Section 6(b)(5) of the Exchange Act, particularly the requirement that the rules of a national securities exchange be designed to prevent unfair and manipulative acts and practices.”
– the SEC said.
