- US Bitcoin ETFs elicited mixed signals on the crypto regulatory front.
- Aside from BTC, most crypto projects have faced regulatory uncertainty.
The American place Bitcoin [BTC] The approval of ETFs in January continues to raise mixed feelings about whether it “legitimizes crypto.”
In a recent interview with Bitcoin Magazine, Neel Maitra, a former SEC crypto specialist, said that January’s approval was “begrudging” and did not look good for the market.
Part of his speech read:
“Its (approval) was reluctant, and it was only for Bitcoin, and it’s not good news for crypto in general.”
To support his arguments, Maitra cited the SEC’s rejection of spot BTC ETFs over the past seven years before the court forced her to do so.
Furthermore, the agency emphasized that the approval was limited to BTC and should not be read as a general approval for cryptocurrencies.
Differing opinions on the impact of Bitcoin ETF
However, Franklin Bi, general partner at Pantera Capital, had a contrarian view. In an interview with ‘The Block’, the director claimed that the approval of the US spot BTC ETFs ‘validated crypto’.
He further noted:
“The approval has really shown people that the regulatory direction is still moving in a positive direction for digital assets.”
The executive added that the approval also convinced many institutional investors that crypto is a long-term technology trend worth exploring.
True to Bi’s word, US spot BTC ETFs have received tremendous interest from institutional players.
For example, the world’s leading asset manager BlackRock had an impressive BTC ETF debut and is eyeing the tokenization of real assets on the blockchain.
However, regulatory heat in industry still exists. Despite the approvals, the SEC has filed lawsuits Uniswap [UNI] and Consensys’ MetaMask.
Moreover, the agency has not clearly stated whether Ethereum [ETH] is not a certainty. This prompted Consensys to sue the SEC and seek clarity from the courts on the status of ETH.
In a separate development, a new one class action lawsuit against Coinbase claims the exchange tricked investors into buying “securities.” Solana [SOL], Near [NEAR]and UNI, among others.
That said, BTC had regulatory clarity following January’s ETF approvals. However, several crypto projects and tokens such as ETH are facing regulatory uncertainty.
Will it take more than ETF approval to validate the legitimacy of cryptocurrencies in the US?