Several investment firm executives have debated the likelihood of the U.S. Securities and Exchange Committee (SEC) licensing a U.S.-based Bitcoin (BTC) exchange-traded fund (ETF) during a CNBC broadcast on March 7.

The word follows the SEC'south recent rejection of its last pending Bitcoin ETF awarding.

Wilshire Phoenix had first filed the application for its proposed 'United States Bitcoin and Treasury Investment Trust' with the SEC during Jan 2022.

Despite alteration their application vi times in thirteen months, the SEC rejected Wilshire Phoenix's ETF, citing concerns near manipulation of Bitcoin'due south market, and limited investor protections.

Bitcoin ETF May Come With Widespread Retail Demand

Chris Hempstead, the manager of institutional business development at ETF and hedge fund provider IndexIQ, predicts that a Bitcoin ETF will come up as retail demand for the product grows.

"I doubt very heavily that it'due south going to exist the last straw," Hempstead stated. "I recall everyone will continue to listen to the feedback and the notes from the SEC, what their comments are, and they will keep to address information technology."

Despite predicting that the committee volition reconsider its stance if faced with widespread demand in coming years, Hempstead does not predict "any significant changes to the SEC'south decision in the near future."

"At some point, when market place demand and investor demand pushes the pendulum to a certain area, they will probably have another look at it and have different kinds of considerations."

Nick Colas, the co-founder of investment analysis house DataTrek Enquiry, expressed skepticism at the prospect of the SEC licensing a Bitcoin ETF any time presently.

"You will see a central depository financial institution cryptocurrency earlier you will see a Bitcoin ETF," he stated.

Stablecoins fulfill consumers' needs

When asked whether stablecoins make "imminent sense" to consumers, Hempstead responded: "I think you're onto something."

Hempstead predicts stablecoins and other cryptocurrency products volition get regulated as the sector matures and the public gain a greater understanding of the inner workings of distributed ledger technology (DLT).

"I think that perchance part of what they're waiting for is a little scrap more than structure and oversight into the operational complication of cryptocurrency transactions [...] I retrieve when nosotros start to see more than take a chance diversification, and more than understanding about how these various products, non only Bitcoin, how they operate - I recall that'southward probably what's needed at the Commission level."

Blockchain is "more than important" than Bitcoin

According to Dan Wiener, the chairman of Adviser Investments and the senior editor of The Independent Adviser for Vanguard Investors, business adoption of blockchain technology is "more important" than cryptocurrency.

Wiener dismissed the notion that at that place is a need for Bitcoin altogether, arguing that payment platforms like Venmo have attracted far greater adoption than cryptocurrencies.

"Do we really need bitcoin? I'k not a drug dealer. I'm not worried about moving money [...] We have many, many ways to move coin around, I don't know that nosotros need to be able to hide ourselves, or our identities."