US Wakes Up! Approves First Crypto ETF
I wrote this as a blow by blow from Crypto ETF market release as a way to show how the US is NOT leading the Crypto revolution, as you can't lead from the rear.
Well, well, well, what an amazing day! The US has finally approved its FIRST Crypto ETF, it's only been on the docket since '12. What's the rush?
SEC Approved ProShares BTC ETF - https://www.coindesk.com/policy/2021/10/15/sec-approves-bitcoin-etf-opening-crypto-to-wider-investor-base/
The shares begin to trade next week!
Yes, a confetti bomb is required, in the country that has to hand out participation trophies as everyone is a winner.
Temper that celebration, as the US still has eight (8) outstanding BTC ETF's awaiting approval. How long will it take for that back log to get even the preliminary review? Counter that with traditional equity markets where the US has greater than 2500 ETFs. Sure, this Crypto realm is still in the early stages but wanted to show these facts as they are in stark contrast to show potential upside for these types of Crypto funds.
Let's recap where we were back on Oct. 1st '21 the SEC stated that the four ETF's from GlobalX, Kyrptoin, Wisdom Tree and Valkyrie were under review for early Dec decisions. The Valkyrie was due for review on Dec. 8th, and the Wisdom Tree ETF for review on Dec. 11th you get the picture. The SEC pushed out the decision from early Q421 to late Q421
Goldman Sachs in June '21 claimed there was no need for a Crypto ETF then on July 27, '21 applied for a DeFi ETF - so what changed in 5 weeks Goldman? Did they learn they would be put first in line or was their another reason for the change of position?
VanEck and ProShares apply to withdraw Ethereum ETF filings from SEC only days apart in late August '21 (recall they submitted their ETF forms just days earlier). Did the SEC give them a tip of the hat that something big was coming down?
Bloomberg on Aug. 25 '21 stated that US could approve a BTC ETF in Oct. '21 - let's see how well their Crystal Ball worked?
Recall way back in 2013 FakeBook applied for the first US BTC ETF, which was thankfully denied.
Let's take a look from overseas perspective
Canada (well its just across land but you get the point its outside the USA) has four BTC's ETF's and three with a potential for rapid approval for another ETH ETF's, the Swiss have two ETF's, Spain is working on their first. German Bank Comdirect offeres 11 Crypto ETP's (as of July). France not wanting to be left behind the Week of August 2nd launched an EU regulated ETF which tracked Bitcoin price (yes it fully complies with UCITS standards). The first NFT by all EU standards. Meanwhile in late Sept. '21 Canada approved its first Multi-Crypto ETF (BTC & ETH) in same ETF. This ETF invests 67% in BTC & 33% in ETH. Nope nothing on the board for USA.
ARK Invest (Cathie Wood) is investing in Canadian Crypto ETF's since the US is dragging its feet along the ETF path (Week of Sept 13th '21) well money flows where it is treated best. North of the border must be a good option.
Lest we overlook that Brazil approved their first ETF during the Week of April 18th '21 then the Week of July 12th Brazil approved their first ETH ETF. Indeed the US is not leading this horse race by any stretch of the imagination, but they have moved the glacier forward a tiny bit.
Why go with an ETF? - its helps those not willing to setup a Crypto Wallet or a ton of wallets, so its the easy button for those that are just throwing money around without understanding the risks. Sure, it brings attention and potential exposure to Crypto... the whole crawl before you walk scenario. In the end its a product by the owners of the equity markets that don't sell Crypto to end users!
What else was going on in the USA while all the other countries advanced forward. Just 5-months after China banned Crypto mining the US had 42.7% of the hash rate and the USA moved to the #2 spot in DeFi after a 1000% YoY advancement. But the bureaucrats still languished in their glass towers throwing parties thinking they were Kings.
Summary - Sure the slumbering Giant woke up to bless our first Crypto NFT, is it too little, too late? In that the USA, has not done enough to educate citizens on the benefits of Crypto or how to utilize them in lieu of the Fiat $.