THELOGICALINDIAN - Following up on their address which estimates a sub25 percent adventitious of a bitcoin ETF approval Needham Company appear a added abundant address on Friday Citing acute absorption in the bitcoin ETFs that are activity through the authoritative action columnist Spencer Bogart offers some insights into what factors the US Securities and Exchange Commission SEC are acceptable because in adjustment to accept or blame a bitcoin ETF
Also read: Needham: Probability of Approval for a Bitcoin ETF ‘Very Low’
Investment cyberbanking and asset administration close Needham & Company focuses alone on advance companies. Since its inception, the firm has acted as advance or co-manager in over 785 accessible offerings. Recently, the firm received absorption for ciphering the adventitious of the SEC acknowledging a bitcoin ETF to be less than 25%, an appraisal that has not afflicted in this latest address advantaged ‘Digging Deeper on Bitcoin ETF Filings and Potential Effect’.
Company Filings vs Bitcoin’s Fundamentals
According to the new report, factors affecting the SEC’s accommodation are either specific to anniversary ETF filing or specific to Bitcoin itself.
Since any problems specific to a company’s filing could be addressed to accede with the SEC’s requirements, Needham believes that Bitcoin-specific issues are the bigger hurdle to the ETF approval. They call these issues as revolving about “broader apropos about Bitcoin itself and whether it is a acceptable asset for a broadly investable agent such as an ETF”.
The address again gain to altercate two capital factors which are potentially the best important to the Commission; adequacy of bitcoin as the basal asset of an ETF, and the accompaniment of the Bitcoin market.
Is Bitcoin a Suitable Underlying Asset?
Based on their analysis, Needham believes that the Commission is because whether a agenda asset like bitcoin is a acceptable basal asset for an ETF back it is altered from a 
commodity, aegis or derivative. “Furthermore, the SEC appears to additionally be evaluating the accident that buying of bitcoin could, theoretically, be afflicted by a allocation of a majority of the network’s hashing rate”, the address explains.
While bombastic that the SEC’s appearance may be altered from their own, it is Needham’s assessment that actuality altered from added asset classes does not accomplish Bitcoin fundamentally clashing for an ETF. Bogart additionally acclaimed that:
State of the Bitcoin Market
“The added above accumulation of apropos that the SEC has appear circumduct about bazaar dynamics”, the address reveals, cartoon absorption to questions such as:
“Published comments from the SEC advance the Commission is additionally evaluating the accident of accident from annexation and computer hacking”, the address reveals.
While citation that clamminess is consistently a reasonable concern, Needham wrote that “there are ETFs for assets that are far less-liquid than bitcoin and these advance cartage action well, so we don’t see any acumen to blame on these grounds”.
Regarding bazaar manipulation, the firm sees risks in any assets, not aloof in bitcoin. “Even the centermost and best aqueous bazaar in the apple (e.g. Gold and LIBOR) accept afresh been the ambition of adult abetment from the best awful adapted entities”, the address describes. The firm believes that bazaar abetment is “largely absolute of the absolute basal asset”, abacus that:
What affidavit do you anticipate the SEC will accord for its accommodation on a bitcoin ETF? Let us apperceive in the comments area below.
Images address of Shutterstock and SEC
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