The US Securities and Exchange Commission is expected to make a key decision on approval ether ETFs next week.
But it will likely fail due to the lack of a comprehensive regulatory framework for all cryptocurrencies, according to Rick Edelman, president of the Digital Assets Council for Financial Professionals.
“I think there will be another delay, and that honestly isn't really bad news,” Edelman told CNBC's “ETF Edge” this week.
Edelman, a personal finance investor and author, believes there should be a focus on regulation to protect people from cryptocurrency scams. He points out that current laws are more than half a century old and are not designed for digital technology.
“Without any police, it forces investors to go it alone outside the investment advisory community because the community can't help them because we don't know what the rules are. They end up in frauds and scams,” he said. “The sad irony is that (SEC Chairman Gary) Gensler claims to want to protect the consumer. But his refusal to write regulations actually hurts rather than helps the consumer.”
Matt Hogan of Bitwise Asset Management is also pushing for new rules.
“80-year-old securities laws are a poor fit for the world of digital assets, cryptocurrencies and 21st century technology,” the company’s chief investment officer said. “Ultimately, I think everyone wanted the same thing. They wanted a safe and secure platform where investors were protected and innovative.”
Hogan points out that Bitwise has its own implementation of an Ethereum spot ETF, and he is optimistic about the future.
“We have entered the era of crypto ETFs. We have seen Bitcoin ETFs come to the market. “We've seen the great things they've done for investors — lowering costs, improving regulation, improving kind of safety and security and peace of mind,” Hogan said. “And I think we'll get there with Ethereum as well.”
Two Ether ETF proposals, submitted by VanEck and ARK Investments/21Shares, are scheduled to be approved or rejected this month.
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