An Exchange-Traded Fund for Bitcoin (BTC) Will Eventually Be Approved, Says a Commissioner at the U.S. SEC

SEC

An exchange-traded fund (ETF) for Bitcoin (BTC) is one of the major expectations of many Bitcoin investors and traders this year. While a lot of firms made moves to get the approval of the U.S. Securities and Exchange Commission last year, things didn’t go as planned for them. The U.S. SEC rejected a lot of Bitcoin (BTC) ETF applications last year, with the reason that the Bitcoin space is not yet ready for an Exchange-traded fund.

A lot of people see a Bitcoin (BTC) ETF as a catalyst for the value of the digital currency. The approval of a BTC ETF can significantly boost the value of the digital currency, that’s why a lot of investors and traders have been looking forward to it.

A Bitcoin (BTC) Exchange-Traded Fund Will Eventually Be Approved

Recently, a commissioner at the U.S. SEC – Robert J. Jackson – said that he believes an exchange-traded fund for Bitcoin (BTC) will be approved eventually. In an interview released by Roll Call – a government-oriented news source – on Wednesday, the commissioner said: “Eventually, do I believe someone will satisfy the standards that we have laid out there? I hope so, yes, and I think so.”

The U.S. Securities and Exchange Commission has a lot of Bitcoin (BTC) ETF proposals on its desk. However, none of those proposals have received the green light yet. The chairman of the SEC – Jay Clayton – said that he does not see a pathway to the approval of an exchange-traded fund for any digital currency until concerns over market manipulation are resolved.

U.S SEC Has Rejected Up To Ten BTC ETF Proposals

To date, the SEC has rejected a minimum of ten Bitcoin (BTC) ETF proposals. In August last year, the SEC rejected seven proposals from GraniteShares, Direxion, and ProShares. Though, a day later, the agency said it would review all the rejected applications. Also, in July last year, the regulators rejected the proposal of the Winklevoss twins to add a BTC ETF on the Bats EZX Exchange. That is the second time the SEC is rejecting a proposal from Tyler and Cameron Winklevoss.

Talking about the proposal of the Winklevoss twins with Roll Call, the commissioner said it wasn’t a difficult case, but the harm and manipulation risk to investors was huge, and the market also has a severe liquidity issue.

Jackson added: “I am happy to say market participants have started to come in the ideas. Whether or not we are going to find one that really protects investors I don’t know, but I do know that the case of the Winklevoss twins was not especially close.”

The rejections by the SEC has obviously not deterred all from trying to make the exchange-traded fund breakthrough. In January this year, as a result of the U.S government shutdown, CBOE withdrew its Bitcoin (BTC) ETF proposal, a proposal that would have paved the way for a BTC ETF backed by SolidX and VanEck if approved.

Bitcoin (BTC) Price Today – BTC / USD

Name Price24H (%)
Bitcoin (BTC)
$3,601.48
-0.21%

At the time of writing, Bitcoin (BTC) is trading at $3,666 after an increase of about 8 percent over the past twenty-four hours. The current market cap of the digital currency is $64.28 billion and its trading volume over the past twenty-four hours is $7.02 billion.

Leave a Reply

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