Bitcoin ETFs “Will Eventually Happen,” Says Cornell Computer Science Professor

Omar Faridi
  • Dr. Emin Gün Sirer, a well-known crypto personality, said technological advancements will eventually lead to the approval of crypto ETFs.
  • Sirer blamed crypto market manipulators for the SEC’s rejection of Bitcoin ETFs.

Cornell professor Emin Gün Sirer, a well-known crypto personality, recently stated that technological advancements in the crypto industry will likely lead to the SEC’s approval of a Bitcoin ETF.

According to Dr. Sirer, there are a couple of ways the US Securities and Exchange Commission (SEC) could be persuaded to green light crypto ETFs. One way, the Turkish-American professor suggests, is to request the SEC to re-evaluate its stance, given Commissioner Hester Peirce’s dissenting opinion against its recent rejection of another Bitcoin ETF.

Dr. Sirer noted that chances are slim the SEC will reconsider Bitcoin ETF applications based on Peirce’s dissenting opinion. This, the professor says, is because “it’s not like the agency didn’t already know” that Peirce didn’t agree with its ruling.

A better could be directly addressing the SEC’s objections regarding a Bitcoin ETF, he suggested. Notably, Sirer, who cited concerns about the DAO on the Ethereum network prior to its hack, is known for keeping a fairly objective point of view. In this particular case, he revealed he thinks the SEC might have rejected Bitcoin ETF applications so far because of its genuine concern for investor protection.

Blaming Market Manipulation

Dr. Sirer went on to allege that those who are critical of the SEC’s ruling often take part in abusive crypto market manipulation tactics. Due, in part, to their harmful activities, the professor believes the federal regulator may have not approved crypto ETF applications at this time.

Despite the presence of pump-and-dump schemes in cryptocurrency markets, Sirer believes the SEC will eventually approve Bitcoin ETFs. However, he stressed that blockchain developers will have to make substantial technological improvements to cryptocurrency platforms, before the regulator reconsiders its current stance.

Sirer added:

“There are technological solutions being developed for building trustworthy exchanges, for adding liquidity, and for doing secure public audits. The answers to the problems cited in SEC's report lie in technology. Tech brought us all the way to this point and it can/will lead us out of here. Rest assured that the ETFs will eventually happen.”

Emin Gün Sirer

Bitcoin Mining Pool Tries to Help Tone Vays Win $10K Bet Against Roger Ver

Cryptocurrency mining pool SlushPool has recently manually added a BTC transaction into a block to help Tone Vays, a derivatives trader and analyst, win a wager mage against BCH proponent Roger Ver.

The wager was made at the 2019 Malta AI & Blockchain Summit, during a debate between bitcoin (BTC) proponent Tone Vays and Bitcoin.com CEO and BCH advocate Roger Ver. In it, Ver argued BTC transactions are too expensive for business use due to the cryptocurrency’s small block size.

Vays, on the other hand, argued segregated witness (SegWit) and second-layer scaling solutions like the Lightning Network allow users to make small transactions without paying high fees, and that he has been using BTC on-chain without paying too much for transactions.

The debate ended up seeing Vays send Roger Ver $5 worth of BTC with a one satoshi per byte transactions fee – equal to the fees paid on the Bitcoin Cash chain – to see if it would confirm the same day. If it did, the CEO of Bitcoin.com claimed he would donate $10,000 to a charity of Vays’ choice.

During the debate, both parties noted the transaction was “priority 23,836 out of 24,355 transactions,” meaning that most transactions on the Bitcoin blockchain had to clear before miners picked that one up, at least according to fees paid for transactions.

As Vays soon noted on social media the transaction cleared after 10 hours. Some, however, found it strange. Cobra Bitcoin, the pseudonymous co-owner of Bitcoin.org and Bitcointalk, pointed out on social media that SlushPool – the mining pool that found the block the transaction was included in – manually added it to help Vays win the bet.

Cobra Bitcoin figured it wasn’t mined “naturally” as it was the second transaction included in the block – right after the coinbase transaction – despite the fee being less than 1% of that of all other transactions included in the block.

On Reddit, users pointed this out and accused SlushPool of manually adding the transaction. The mining pool, according to some users, is known for supporting BTC and being against Bitcoin Cash.

Should Roger Ver Pay?

The wager quickly became a controversial topic that seems to bring back memories of the scaling debate that was going on before Bitcoin Cash forked off of the Bitcoin network back in August of 2017.

Some argue that Roger Ver’s point stands as the transaction wasn’t “naturally” confirmed, but manually included in a block. Moreover the CEO of Bitcoin.com claimed he’d donate the money if it confirmed that day, and when the transaction did confirm it was past midnight in Malta.

On the other hand, some claim the transaction did go through anyway, and as such Roger Ver should donate the funds to a charity of Tone Vays’ choice. Moreover, Vays himself argued BCH supporters could have spammed the BTC mempool with two satoshis per byte transactions to stop his from clearing on time.

On Twitter, Vays created a poll that was retweeted by SlushPool and admitted the mining pool did prioritize the transaction. It currently shows most users believe Roger Ver should donate the funds. As one commenter pointed out, however, the results may change if Ver and other BCH supporters retweet the poll.