Mr. ETF: we are years away from Bitcoin ETFs

Reginald M. Browne, ex-member of KCG, who is now in Cantor Fitzgerald and considered by many respectable outlets a specialist on the topic of exchange-traded funds, with many years of experience of engagement with financial regulators of the United States, has told what he thinks on Bitcoin ETFs.

Any hopes for his support of cryptocurrencies fade away once one sees his facial expression when Bitcoin is mentioned. As the reporter describes that Bitcoin could be the next wave of innovation, the initially surprised expression changes into a brief skeptical smile, even with a faint giggle (5:01 on Bloomberg’s video).

After that, Mr. Browne tells he thinks Bitcoin is too strange right now to quickly become an ETF. It will not become an ETF in the near future, “Mr. ETF” (another nickname the business media gave him) assures, it will be just a vehicle currency, or a currency for cross-border payments, and it will also be attractive as exchange currency. It somewhat resembles a bubble, Browne believes. When talking about the regulative approach, however, the businessman is quite certain that the SEC (United States Securities and Exchange Commission) got it all right with cryptocurrency.

This is a perfect example why the cryptocurrency enthusiasts must not expect the traditional market to say “yeah, let’s leave everything behind and just embrace coins”. Bitcoin, with its current problems and volatility, needs years to build a reputation.