There has been a lot of talk about Bitcoin ETFs as of late, first with the SEC’s disapproval of nine Bitcoin ETF applications in late August and now regarding their pending review. For cryptocurrency fans, a feeling of deep disappointment has given way to some optimism with reports that public statements in favor or opposition to the ETFs will be received until October 26. After this date, the Bitcoin ETFs will be considered in light of new developments and changes implemented by the companies that submitted the original applications. While some are getting excited about a potential crypto price rise, other commentators are firm in their conviction that a Bitcoin ETF is not going to happen any time soon.
Irrespective of any Bitcoin ETFs that may be in the pipeline, there is a company that is here to deliver all the desired financial services, straddling the fiat and crypto world, with a modular ecosystem that delivers to individuals and big businesses. That company is Optherium, and its services have been given an exemption by the SEC under regulation D. Optherium also holds various foreign exchange licenses, including those for the European Union. In a short time, Optherium has invested a huge $3 million into the research and development of their global financial blockchain infrastructure, which is only getting stronger. While the ETF route stalls, Optherium’s Ecosystem is already functioning and being used by crypto adopters worldwide. This begs the question: Do we need a Bitcoin ETF at all? Can Optherium provide the necessary conditions to allow investment to flourish on its own? Let’s take a closer look.
An ETF, or exchange-traded fund, is a way of investing in something from an arm’s length. Rather than directly holding a commodity, bond or group of assets, you can buy a stock provided by a company, which follows the original asset. The reason that people are so excited is that big institutional investors are afraid of crypto, but a Bitcoin ETF is seen as a way of remedying the situation. Considering 31 crypto exchanges have been hacked to the tune of $1.3 billion over the last eight years and 54% of crypto exchanges are reported to have security holes, it is no wonder that huge investors are staying away.
A Bitcoin ETF, however, would let traders with brokerage accounts make investments in Bitcoin (BTC) without having to deal with wallets, multiple exchanges and crypto purchases themselves. From an investor’s standpoint, going through a reputable financial institution with experts to hold the currency, not to mention an investment that is tradable on exchanges, is a much more attractive avenue. From a crypto holder’s standpoint, they believe wider cryptocurrency adoption will drive up prices due to greater demand and liquidity.
Although a Bitcoin ETF would drive some crypto awareness and adoption in the long term, there are some significant drawbacks and the rapid windfall crypto champions are hoping for is unlikely to instantly materialize. Despite the optimism, the Bitcoin ETFs were rejected on some pretty solid grounds. The SEC wrote in the case of GraniteShares, “the Exchange has not met its burden … in particular the requirement that a national securities exchange’s rules be designed to prevent fraudulent and manipulative acts and practices.” Whether the situation will have changed on review is possible but not likely, so the saga may drag on for longer than crypto enthusiasts wish.
There are other problems that become apparent when assessing the creation of a Bitcoin ETF, chiefly the fact that it goes against the philosophy of the crypto community. The financial freedom that cryptocurrencies afford will be taken away because ETF holders will need to rely on a company, to whom they will have to pay fees. Then there is the fact that holders won’t be able to buy or sell instantly, they will have a coupon that they will need to redeem, which takes time.
One final point is that if a Bitcoin ETF is launched, it will take time for big investments to come in. Large institutional investors are unlikely to jump in with wads of cash on creation and growth will happen slowly over time.
What is Optherium and What Can it Bring to the Table?
In reality, the world doesn’t even need a Bitcoin ETF. Security and usability are the two big points that are required to drive investment. Optherium already provides this and its Ecosystem can be used now!
The Optherium Ecosystem was developed by Optherium Labs, the CEO of which is Serge Beck, an entrepreneur who worked on Wall Street for over 10 years developing and implementing software systems for some of the biggest financial institutions, such as Merrill Lynch, Bear Stearns, and HSBC. Upon witnessing the problems associated with the centralized storage of information, which is vulnerable to attack, and the slow and costly movement of funds globally, the idea of creating a new system for global banking started to emerge. To this end he teamed up…