For Ethereum Founder, Cryptocurrency Mass Adoption Matters More than ETFs
For Ethereum founder Vitalik Buterin, mass adoption of cryptocurrency is more important than exchange-traded funds (ETFs).
Much of the news lately when it comes to cryptocurrencies is about bitcoin exchange-traded funds (ETFs). Crypto billionaires, Cameron and Tyler Winklevoss sent a proposal to US regulators to launch a bitcoin ETF on a regulated exchange, but the US Securities and Exchange Commission (US SEC) blocked this move. The commission voted down the proposal this week. For US SEC, there are still price manipulation concerns with cryptocurrencies, although the regulator did say that its decision does not rest on whether bitcoin has inherent value.
ETFs are marketable securities that track either an index, asset, or fund, and traded in a public exchange. Simply put, it’s a fund that follows a certain index. For example, in the Philippines, there’s the “First Metro Philippine Equity Exchange Traded Fund (FMETF)” that is traded on the Philippine Stock Market. Its stock price follows the performance of the Philippine Stocke Exchange Index (PSEI)*. So if the PSEI goes down, the FMETF goes down as well. If the PSEI goes up, so does FMETF.
While an ETF can be beneficial to cryptocurrencies or not is up for another discussion article, for Mr. Buterin however, it will be better if the crypto community is more focused on making cryptocurrency easily accessible to everyone. This means making crypto payments easier, making cryptocurrencies easier to buy, sell, or trade.
Twitter users who replied to Mr. Buterin argued on the advantage and disadvantages, as well as hurdles on both ETFs and mass adoption to proceed.
However, Mr. Buterin thinks that there’s more lobbying for ETFs than for usage of cryptocurrency.
In the Philippines, the regulators, most notably the Philippine Securities and Exchange Commission (SEC) and the Bangko Sentral ng Pilipinas (BSP), have been coordinating with blockchain companies in the country to come up with balance regulation regarding cryptocurrencies.
Coins.ph and SCI Ventures’ Rebit are apps licensed by the BSP to facilitate the exchange of cryptocurrencies such as bitcoin into fiat (Philippine pesos).
Source: Vitalik Buterin on Twitter, Investopedia
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