Bitcoin (BTC) Trading Platforms Lack Adequate Monitoring and Transparency to See Approved BTC ETFs Says SEC Chairman

bitcoin price analysis

Bitcoin (BTC) investors and the entire crypto market have long been waiting for the approval of an exchange-traded fund for Bitcoin. The U.S SEC has rejected several Bitcoin (BTC) ETF applications this year. A lot of trading platforms have been seeking the approval of the SEC, but the SEC is yet to approve anyone.

Recently, Jay Clayton came out to say that Bitcoin trading platforms lack appropriate monitoring and transparency for the SEC to approve an ETF for Bitcoin (BTC) for the market. Jay Clayton is the chairman of the U.S Securities and Exchange Commission. He disclosed during the Consensus Invest Conference that took place in New York.

Jay Clayton’s Opinion Regarding a Bitcoin (BTC) Exchange Traded Fund

Jay Clayton believes that an exchange-traded fund for Bitcoin (BTC) would be too easily influenced. He said there are insufficient safeguards at the moment to prevent such from happening. This is also in line with the present investigations and actions by the federal government into Bitfinex and Tether. There is a speculation that Bitfinex is using Tether (USDT) to manipulate the moving value of Bitcoin (BTC) as a whole.

Bitfinex is one of the most popular digital currency trading platforms in the world. However, the trading platform is under the scrutiny of the federal government. In all, the BTC market is too embryonic to have the kind of equipment that the U.S SEC wants to see at the disposal of trading platforms in order to approve a BTC ETF.

An ETF for Bitcoin (BTC) would provide investors a way of investing in the Bitcoin (BTC) market without holding actual BTC. The SEC has rejected quite a number of BTC ETF applications this year and last year. The application of the Winklevoss twins is among the rejected proposals.

After the SEC denied the Winklevoss twins a BTC ETF, they sought to use the monitoring software of Nasdaq on their digital currency trading platform. The Winklevoss brothers are the owners of Gemini exchange – one of the top trading platforms in the U.S. There might be a lot of exchange-traded funds for Bitcoin (BTC) in the future. Nevertheless, there won’t be any for now.

Bitcoin (BTC) Custodians

Another issue in the industry is safe Bitcoin (BTC) custodians. Bitcoin (BTC) custodians are also seen as lacking. There are just a couple of regulated Bitcoin custodians in the market. The recently launched Coinbase Custody by Coinbase – a top digital currency trading platform – is an example.

Clayton also talked about his unease to Bitcoin (BTC) heists in the past and at the moment. He said the Bitcoin (BTC) market have a very long way to go before the SEC will consider approving an ETF for Bitcoin. Investors are still at liberty to purchase and HODL Bitcoin. Nevertheless, the idea of trading against the entire market is way off the roadmap.

Bitcoin (BTC) Price Today – BTC / USD

Name Price24H (%)
Bitcoin (BTC)
$3,364.05
-2.24%

At the time of press, Bitcoin (BTC) is trading at $3,994 after a sharp decrease of about 7 percent over the past 24 hours. The market cap of the digital currency is now $69.51 billion with a trading volume of $6.01 billion over the past 24 hours.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.