Bitcoin has grown significantly since its launch back in 2009. The digital asset often referred to as digital gold, has reached an all-time high of over $60,000 before crashing, showing it has potential for more growth. However, Volatility Shares co-founder Says more growth awaits Bitcoin with a bitcoin spot ETF.
Speaking in an interview with Decrypt, Justin Young who is also the president of Volatility Shares said many investors who would have been interested in Bitcoin are waiting for a Bitcoin spot ETF to get in. According to Young, investors are looking for the “easiest and most regulated way” to invest in Bitcoin, and a Bitcoin ETF will help in driving that interest.
Several attempts have been made to secure a Bitcoin spot ETF, but to no avail. Companies like VanEck and Bitshares have applied to the SEC multiple times but have been rejected all the time. This year, another wave of applications have been filed, and there’s a lot of optimism in the crypto space that a spot ETF may be approved this time around.
Investors’ concerns have been mostly around the integrity of crypto trading platforms and the tendency for market manipulation. Young says an ETF approval will take care of all these concerns and make investors on the sidelines more likely to enter the space.
“There’s obviously been a lot of press around the downside of some of these crypto exchanges and the legality of some of them that currently exists,” said Young. “So by bringing Bitcoin in an ETF format, you solve for a lot of those issues”
SEC Concerned About Market Manipulation
The SEC has been reluctant about approving a Bitcoin ETF. One of the top reasons given have to do with fear of market manipulation. Another major concern with the industry is the volatility that characterizes the industry.
Young says that a Bitcoin ETF can stabilize the volatility in the market and make it more attractive to institutional investor.
“I think the biggest advantage to having that spot ETF and market is that you create more stability and less of that volatility that the SEC doesn’t like,” Young said.
Several Applications Filed
It seems there’s a lot more interest in a Bitcoin spot ETF, many applications have been filed this year. Some of the applications include those of BlackRock, Ark Invest, and many others, though the SEC rejected the applications citing lack of a surveillance sharing partner.
The applications have been refiled, naming Coinbase as a surveillance partner. With that condition met, the crypto space is optimistic that approval for a Bitcoin spot ETF may be closer now than it ever was. If a spot ETF means anything like what Young says, a huge growth opportunity for bitcoin could also be around the corner.