Reputable Bitcoiner and former Google engineer Vijay Boyapati discussed the potential implications of Bitcoin ETFs for regular investors. If accepted, the new product might simplify the procedure in several ways for gaining visibility to the biggest cryptocurrency.
Bitcoin ETF to remove KYC/AML barriers for potential BTC investors
The establishment of a Bitcoin ETF may be crucial to releasing the “trillions of dollars” that ordinary investors have stashed away, according to author of The Bullish Case for Bitcoin Vijay Boyapati, who expressed this opinion on his X account today, December 23, 2023.
https://x.com/real_vijay/status/1738444077551784393?s=20
Currently, there are too many obstacles to overcome when purchasing Bitcoin (BTC) using fiat money in terms of custody, taxes, and basic comprehension of the cryptocurrency idea. Also, when attempting to buy Bitcoin using the current fiat on-ramps, new investors are subject to rigorous “Know-Your-Customer” verifications.
The prospective investor base for Bitcoin (BTC) is significantly reduced by these obstacles, in addition to the fact that most investors are only willing to commit a small portion of their portfolios to such a risky asset:
Overcoming these obstacles just doesn’t seem worthwhile to many typical investors. Time and complexity are major filters, which is why the majority of early Bitcoin investors had relatively risk-taking investment philosophies.
The United States’ approval of the Bitcoin ETF would eliminate the requirement for further KYC/AML checks by enabling investors of all stripes to buy Bitcoin (BTC) using their current brokerage accounts.
As of right present, purchasing Bitcoin (BTC) using cash on KYC-neutral platforms is limited to dubious locations or has hefty transaction costs.
Three weeks before green light? SEC allegedly set “final deadline”
Boyapati came to the conclusion that encouraging new investors to switch to “physical” Bitcoin (BTC) via an ETF would be the result of owning a portion of the cryptocurrency.
Arthur Hayes, co-founder of BitMEX, is worried, however, that liquidity may move from “real” Bitcoin (BTC) to BTC ETFs, which would represent yet another category of TradFi assets under state control.
The excitement surrounding the Bitcoin ETF has increased recently, as previously reported by U.Today. U.S. SEC authorities allegedly met with heavyweight asset managers BlackRock, Ark, and Grayscale yesterday.
The first batch of ETFs are expected to be authorised in 20 days, according to some analysts, while the next SEC decision deadline ends on January 10, 2024.
