At this point the only reason this ETF might get disapproved is due to Bitcoin's volatile nature. [...] The volatility won't likely diminish to such a level, that they find it stable enough to approve the next first ETF that comes their way....
I agree - and have also read it in several comments - that volatility is a concern for the SEC. Imagine a pension fonds investing in an asset that frequently dips 10-20% in a single day and can lose 70% in the course of a year or less.
But I don't agree that volatility can't be fought. Liquidity is already increasing, we have now less hard crashs and less steep rallies as in 2013, for example. Decentralized backing mechanisms, like the one I am proposing
here for OpenBazaar, could lower volatility even further.
I totally agree that the market in numerous ways is maturing more and more, but we can't just discard the fact that at this point, and likely also in the far future, Bitcoin is and will remain a free market. It means that whatever entity can buy or dump whatever number of coins at once influencing the market significantly. In case of a dump, the higher the price goes, the weaker the support gets in form of coin quantity.
Example -- at a price of $500 you could place a 2000 BTC buy wall being worth $1,000,000 to offer support. If you use that $1,000,000 right now to support the price, it will only account for ~870 BTC. Current whales and early birds will only become more influential in that regard.
