If you’ve been following crypto news lately, it’s true that the crypto market is having a comeback thanks to speculation that there will be an approved Bitcoin ETF. There are quite a number of Bitcoin and crypto-related ETF applications submitted to the US SEC. However, it is also true that there really is no guarantee that any of these applications will be able to pass. The Winklevoss twins’ Bitcoin ETF application has already been shut down twice.
The newest SEC commissioner Hester Pierce instantly became a celebrity as she voted in favor of a crypto-based exchange product. Included in her 2,400-word rebuttal of the rejection, she mentioned that “The Commission’s approach undermines investor protection by precluding greater institutionalization of the bitcoin market”. She also added that: “would rather we err on the side of approving products so that investors, who are generally better judges about these things than we are”.
Mass Adoption Over ETF?
But if you will ask Vitalik Buterin, he believes that the crypto community is looking at the wrong direction. He said that rather than focusing on crypto-ETFs, the focus should be on mass adoption. The focus of the industry should be geared towards making cryptocurrencies a method of payment for everyday purchases.
He tweeted: “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”.
Buterin believes that a crypto ETF will be able to pump the price. This would give cryptocurrencies the legitimacy that it needs from the institutional investors and from the general public as well. However, the focus shouldn’t be on cryptocurrencies being used as an investment but rather on adoption.
The likes of Litecoin tried to increase mass adoption by running a campaign. There are already small businesses that have started adopting Litecoin. However, it is also worth mentioning that regulatory clarity is a must in order to encourage mass adoption. You don’t expect consumers and businesses to use a currency that has wild swings.
Nasdaq is already doing the best that it can in order to be ready for cryptocurrencies. It has been reported that Nasdaq even had a closed-door meeting with different heads of crypto exchanges. Though there were no details regarding the said meeting, it isn’t the first time Nasdaq flirted with cryptocurrencies. Nasdaq has partnered with crypto exchanges and even provided its technology for different crypto exchanges.
Is Ethereum’s founder right after all saying that mass adoption is more important than having a crypto-related ETF? Both could potentially increase the price of cryptocurrencies. However, it is imperative that there is regulatory clarity first. So far, the US Securities and Exchange Commission has already considered Bitcoin and Ethereum not as securities. And because of this, it only means that both are not subject to rules and regulations applied to different investment vehicles.
Mass adoption is quite a tricky discussion considering that there are also other factors to look into such as the cost of every transaction and the rate of each transaction.