Topic: Will Spot Bitcoin ETF also favor the SEC? (Read 169 times)

Is it absolutely true that people who are banning Bitcoin of course they also indirectly own Bitcoin. But they can't reveal it. There may be many who are buying Bitcoin and working in the SEC. However, since the SEC is a government agency, it has to work in the light of the government's mandate of that country. If ETFs are approved, everyone involved in crypto will definitely benefit. A huge amount of money will be added to the crypto market which can take the market to unique heights. But the first thing that will prevail is how much benefit the government will get from this. Many are speculating that Bitcoin ETF will be approved but I am not sure until it is approved.

  Like some others have said, the official reason is that the ETFs were not structured in a way that manipulators can be identified.This is a bit silly, because manipulators of silver, gold or diamond prices can also not be identified. That’s why the unofficial reason is political climate. SEC governors will be kind of held responsible if people lose a lot of money in crypto with Bitcoin futures etc, which will happen. So, they are looking for something that saves their buttocks so to speak and makes them not responsible if people lose money. Despite these ongoing challenges many are still optimistic that a spot bitcoin ETF approval will come mid to late 2022. Projects are continuing to have discussions with the SEC about best practices to prevent any market manipulation or fraud.
   If the ETF gets full approval, I wouldn’t be surprised to see Bitcoin go to $100k .A full SEC approval will literally kick in the doors for the traditional investors looking to diversify and put their hands on the market that offers relatively high gains and it will make them want to pour massive amounts of cash into ETFs as well as put some of it directly into Bitcoin itself. Nonetheless, it's important to remember that the cryptocurrency market is highly volatile and influenced by various factors, so it's crucial to stay informed and make investment decisions based on thorough research and personal risk tolerance.

Haha, you hit the nail on the head. I know all this while the SEC has been postponing this ETF, there has been something behind it. Like the thing is, will it also affect exchanges as I do trade with

As you also said, the SEC works for the government and the government would never accept bitcoin or legalize it if they didn't get the benefit behind that approval. We still don't know what their real benefits are but as some have said and I find it reasonable. Taxes and making it easier for them to manage bitcoin through centralized exchanges is something they are definitely thinking about.

Some people have pointed out that ETFs are bad for bitcoin, and they are probably not wrong because they think bitcoin will become more centralized. But one thing we need to know is that ETFs are almost inevitable.

By promoting centralization of the Bitcoin system, it would make it easier for the SEC to regulate and control the space through targeted policies aimed at institutional investors.
And SEC may be taking their time to thoroughly evaluate the potential risks and concerns associated with a spot Bitcoin ETF.
And I also think that this approval will be good for both for investors and for SEC.

Accepting an ETF means they are treating bitcoin as an asset and not a currency, so it cannot be said that bitcoin will harm banks or fiat currencies. If bitcoin is truly a threat to fiat, banks and governments will certainly take strong measures to block bitcoin, not legalize it. Besides taxes, ETF approvals, I think the government also wants to control this asset through centralized platforms, that's what they are thinking about. They won't accept bitcoin if it doesn't bring any benefit.

Now you’re misunderstanding me introducing the cross border transaction subject here, it wasn’t related in any way to bitcoin spot ETF, I was just bringing that up to emphasizes my point of why the government sees bitcoin as a rival or competitor to its traditional currency not saying the ETF approval will have an impact on that.


I can’t agree less with you because I think with investors actually going through this traditional exchanges to get bitcoin even though it is not real one will make the government Atleast have an idea of the number of its citizens actual involved into bitcoin holding. Should they need to find the details of possibly the investors, this traditional exchanges might have to provide it for them base on the rules of regulatory compliance. One thing I would say the government is bent on having a hold of or taming in this bitcoin is the fact that people can go into full anonymity. The government doesn’t want you to have that privacy. And just like regular exchanges were you submit KYC and we all say you’re no long anonymous because the government can get you through them, I also see this traditional exchanges been another backlog for the government to get details of its investors.

The SEC doesn’t care what happens with the etf after it’s approved. They don’t want there to be issues like there being some broken network and leads to huge price declines which end up causing huge losses in the financial system.

One reason why they are skeptical about approving it is if there is some big problem like the chain stops and price crashes 80% in a day, it will set off margin calls everywhere and it’ll lead to institutions dumping other assets like SP500 futures which will tank that market also. Hence why it’s taking so long to get it approved.

Your explanations are true but it has some exceptions. Bitcoin is a threat to the government only when it is used in its traditional state which is P2p. Immediately there is an intermediary Bitcoin ceases to promote freedom and anonymity and this is also the case of spot Bitcoin ETF.

SEC is a part of the government that regulates the security and exchange arm of the country. Do you think BTC ETF will help them to identify Bitcoin investors which is against the anonymity that bitcoin promotes? Do you also think that regulators can easily control institutional investors?

SEC is a regulatory body. Approving a BTC ETF doesn't do anything to favor them. It'll favor Wall St types, corporations, traditional investors, and the like who can more easily get exposure to Bitcoin, but it doesn't do anything for the SEC as they are a regulatory body and not a market participant.

Yes, same here, I don't see any connections or what benefit will SEC get from approving the Bitcoin ETF. I mean it's their job to do that so obviously as a regulatory body they will have to give in to the pressure of the Spot ETF. But first they should be putting some form of protection and I think those companies have already adhere to the policies of SEC. So for me its just a matter of time before they will have to approved it. Maybe they will look good in the eyes of the investors or maybe some wall street guys. But that is their job though so they will have to perform it as mandated.

I don't understand how or why the bitcoin ETF should help the SEC, besides eventually getting sued from some multi-billion dollar international funds since they see their applications getting rejected with different excuses every time. The SEC is supposed to protect the investors, the people (just like they did with their friend Madoff ), they are not there to obtain some direct advantage.

We are talking about Bitcoin Spot ETF in the USA., not in other nations. Globally, we already have Bitcoin Spot ETF.

In the USA. they have freedom and their nation is not governed under the only political party so that their people voice has its power. If a party does not work for their people, they will lose their power in a next President Election. Power can be changed from Democrats to Republic Parties each four years and many things can be changed in the USA.

We are not talking about nations like Russia, South Korea, China where governments are fully centralized in a single party (or only party) there.

Who can argue about that because it is fact but can you argue about interest of some institutional investors who want to invest in Bitcoin through Bitcoin Spot ETFs? It's another fact.

They can start with Bitcoin Spot ETF and they can change themselves, change their investment strategy. I see it is a good start like if you are working for a company that invests in Bitcoin Spot ETF. I believe you or some of your colleagues might start to do your due diligent research about Bitcoin. It's a start of something, slowly but makes sense in a long run.

But without the bitcoin spot ETF, people have been using bitcoin for cross border transactions since it was created.

With bitcoin spot ETF,  bitcoin ETF in the traditional market can not be used for something like that because regulation will make it not possible. Bitcoin spot ETF will only benefit the government more to track people and tax them.

You are not getting it from tranthidung perspective, the government sees it as a threat because with bitcoin people will have freedom to actually do things freely with their money, like cross border transactions without having to pass through the hassle of banks to change from currency to another which benefits the banks. With bitcoin many people can go into total anonymity of their funds without the preying eyes of the government.
Look at the example of the citizens of El Salvador you brought, they treat bitcoin as an investment rather than saving in fiats because of its characteristics but do the government also see this as nothing? No.

Also i agree that this SEC approval of bitcoin ETF will definitely have an advantage they want maybe something like keeping taps on those investing into bitcoin since it will be traded on traditional exchanges they don’t need to bother much about regulating the common exchanges we have in cryptocurrency. But I don’t see this centralizing bitcoin market one bit

Supervising the securities market has become the SEC's job. And of course the Spot Bitcoin ETF will also be categorized as a securities market because it will be under SEC supervision after approval. But I have a feeling that the SEC will not do much to make Bitcoin centralized. Because there is a difference between the regular bitcoin spot market and the Bitcoin Spot ETF. And the SEC has limited authority in this matter. Because Bitcoin itself is not considered a security in the US. So I'm not worried about anything else regarding the SEC and Bitcoin Spot ETFs. As an investor I am excited about big institutions joining bitcoin. But I also have my own concerns about this. But I can't explain my worries.

Well, the regulatory policies that the SEC should be establishing were supposed to stop fraud. You know, the kind of stuff they let FTX and its band of disheveled incompetent geeks get away with for years.  

But the SEC can also fall prey to lobbying, especially from politicians. And we are seeing a lot of them try to shut down crypto by drafting bills - most not necessarily intended for the SEC, but can still cause a bad policy to be made nonetheless. But a clamping-down on ETFs shouldn't do anything to the average user anyway, because really, only institutions benefit from it. That's why I feel neutral about the topic.

It all comes down to the organization being basically a skeleton with no real funding for it to draft safe and useful policies.

Whatever the reasons SEC is delayed on the approval of these ETFs are, this is making me believe that they're going to put that in timing with the upcoming halving.

It's not a secret to them that the Bitcoin halving is about to happen somewhere between March-April of 2024.

That's why they're just letting it go and make the people speculate as much as they can and get close to the news that are manipulating the market into crazy pumps for the past weeks.

SEC are full of people, they are not from other planets and the rumours of possible money making from Bitcoin and crypto is going around, tell me how it's impossible for those working with SEC not having Bitcoin at all? That's impossible.

Even while there was bans on Bitcoin in my country, some government workers and bankers purchased Bitcoin through my help, they give no fk about the government decision and they are passing out the rules and yet breaking them behind the walls.

Those bitcoin haters in the US are also investors, there is no way you can know that they are also buying themselves because you don't need anyone's presence to purchase some Bitcoin and hold, they just hate that people are turning into millionaires with crypto and not them.

So why would the government allowed it to be approved?

If bitcoin spot ETF is approved, it is just a way to draw bitcoin closer for the government to be able to tax bitcoin (ETF) users.

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See people seeing bitcoin more as investment and for trading. You can see El Salvador that legalized bitcoin, it can be used for payment of goods, services and salaries and businesses can accept it, but why more than 95% of El Salvadorans are still having USD in savings if compared to bitcoin. Bitcoin is not a threat to fiat.