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The last few days have left a few crypto traders speechless with some having a good time shorting Bitcoin (BTC), Ethereum (ETH) and other prominent coins on BitMEX. The Bitcoin Cash Hash Wars have been blamed for the decline of Bitcoin (BTC) from values of $6,300 to current levels just above $5,500. This is a drop of 12.6% in period of less than a week.

Bitcoin ETF Approval Chances Are Slim

The chances of the American SEC observing the entire debacle from a far are very likely. Especially with 9 pending Bitcoin ETF applications by Direxion (5), GraniteShares (2) and ProShares (2). There is also the CBOE sponsored ETF that everyone was certain would be approved. Their fate now hangs in the balance after the events of this past week.

But the Bitcoin Cash Hash Wars proved that having an ETF backed by just Bitcoin might be very risky. This is given the fact that three individuals – Roger Ver, Jihan Wu and Craig Wright – can bring the crypto market to its knees.

Therefore, we might as well propose that the ETFs at the SEC be revised to include a ‘basket’ of digital assets rather than just Bitcoin.

But What Is An ETF?

An Exchange Traded Fund (ETF), is a marketable security that tracks a stock index, a commodity, bonds, or a basket of assets.

This means that other digital assets can be included in the aforementioned basket of assets. They can also be stored through Custody Service providers such as Bakkt, ICE and Coinbase

But Why Include XRP, XLM, NANO, ADA and TRX 

Firstly, the five digital assets of XRP, Stellar (XLM), NANO, Cardano (ADA) and Tron (TRX) are all pre-mined. This means that their networks cannot be held hostage by miners.

Other pre-mined digital assets that can be included in the basket of goods include Binance Coin (BNB), EOS, MIOTA, XEM, just to name a few. What we are doing here, is simply pointing out that a Bitcoin ETF would have a better chance of approval if it was revised to include coins that are not under the mercy of miners.

Ripple’s CTO, David Schwartz, had warned us about the flaws of proof-of-work networks and miners. He had stated that:

80 percent of the mining on the Bitcoin blockchain is centralized in China, despite the country’s ban on digital assets. This puts it at greater risk of being manipulated by a single, sovereign government.

Some experts even suggest that in a worst case scenario, miners of Bitcoin and Ethereum blockchains could use this to their advantage — conspiring to rewrite history on the blockchain through a 51 percent attack that results in verified transactions being unvalidated and allows for fraud to occur.

Secondly, and particularly observing XRP and Stellar (XLM), these two digital assets were noted to having held their value during the last few days of market chaos. As a matter of fact, XRP is now in the number 2 spot according to market capitalization. XLM is firmly in the number 5 spot ahead of EOS.

In the case of Tron (TRX), the digital asset is thriving in its own ecosystem provided by the Decentralized Exchange. TRX is sure to decouple from Bitcoin with time.

NANO and ADA are equally brilliant projects. NANO transactions do not cost a thing and the network is amazingly fast. Cardano (ADA) on the other hand, is one of the few projects that is actually decentralized. BTC and BCH have proven that their networks are pretty much centralized through the power of miners.

In conclusion, the past week has proven that the price of BTC can be affected by a few individuals. This in turn means that an ETF backed by Bitcoin would be at their mercy also in the future. What we are suggesting in this case, is that the applications at the SEC for an ETF be revised to include other coins with consensus protocols. These coins are pre-mined and would not be affected by hard forks.

What are your thoughts on an ETF being backed by more than one digital asset? Please let us know in the comment section below.

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Crypto Crimson or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.