The first ever Bitcoin ETF could be on the cards with news coming in that the US securities exchange commission (SEC) could give the green light to a Bitcoin ETF in 18 months. This splendid news was revealed by Ali Hassan, CEO and one of the three co-founders of asset management firm Crescent Crypto. Ali Hassan, who also happens to be a former executive at Goldman Sachs, spoke at the Bloomberg markets studios where he discussed the potential of passive management strategies in crypto markets. When asked about the second consecutive rejection of Winklevoss Bitcoin ETF by the SEC, he acknowledged the SEC’S investor protection concerns.
Ali Hassan, however, proposed that the SEC embraces passive investments to get rid of a good number of the concerns. He also added that passive investments will add boost public participation in the crypto markets. The Crescent crypto CEO also expressed confidence that a Bitcoin-only ETF approved by the US securities exchange commission (SEC) was only a year and a half away from coming to fruition. Ali Hassan also pointed out to some of the most eye-catching Bitcoin ETF projects at the moment. He singled out project VanEck for comment stating that the project was top on his lookout list.
VanEck had made attempts to address the SEC’s concerns by inflating its Bitcoin ETF’S share value only to fail even on its second attempt. This failure made the project unrealizable for retail investors. At the moment, each VanEck share is worth approximately 188,000 dollars which is currently equal to 25 Bitcoins. Ali Hassan’s asset management firm which launched in this year’s first financial quarter goes after wealthy American investors only whose yearly salaries are above 200,000 dollars. In order to keep their asset management fund protected, Ali Hassan and his associates only list the top 20 crypto coins in their portfolio after they have met specific standards of security, market capitalization, and liquidity.
In his February address to the United States Senate, SEC chief, Jay Clayton, reserved his intentions to put a stop to crypto ETFs because of their improper custodianship, high volatility, security and long-only nature. In his Bloomberg interview, Ali Hassan addressed some of the concerns harbored by the US securities exchange commission (SEC) chief, Jay Clayton, stating that none of their investors had faced any challenges with their index fund. He further stated that they had addressed the issue of volatility by holding 20 crypto coins with slightly varying levels of correlation while also using a 90-day trailing average market cap. In response to further questions, he also revealed that they were addressing the risk of exchanges by keeping all the assets in their possession in cold storage. In his last statement, he expressed a positive outlook for Bitcoin stating that the coin’s future would rise as high as the moon.