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

CME Group Expects Bitcoin Options to Be Popular With Asian Investors

  • CME Group's Tim McCourt says he expects the launch of BTC options to be a hit with Asian investors and crypto miners.
  • The exchange is planning to launch its options product in Q1 2020.

Exchange operator CME Group expects bitcoin options trading to be a popular investment product for Asian clients, according to a new report. 

Tim McCourt, CME Group’s global head of equity products and alternative investment, said he believes the launch of bitcoin options trading will go over especially well with Asian clients. The U.S.-based futures trading platform is eyeing Q1 2020 for the launch of their new bitcoin-derivatives based product which will provide investors access to BTC options trading. 

McCourt explained that Asian and European investors have accounted for roughly half of the trading volume for CME’s bitcoin futures thus far. McCourt also said that bitcoin options will empower crypto miners by allowing them to hedge the cost of their production. 

The CME Group exec further described the appeal on options, 

While futures give you a one-for-one exposure, whereby the movement of the underlying bitcoin translates directly to a specific dollar value per contract, an option gives you varying strike-price levels and can give you either downside protection, or upside exposure at a fraction of the underlying [assets’s] price.

McCourt addressed the slow start to rival Intercontinental Exchange’s Bakkt, saying that CME Group has no intention of launching physically-settled contracts. 

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