The Bitcoin ETF approval is one thing the entire cryptocurrency market has been waiting for since last year. This VanEck Bitcoin ETF is going to be the key that will invite institutional investors to the cryptocurrency space. However, the chairman of the SEC, Jay Clayton, has been skeptical about the Bitcoin ETF approval. His worries aren’t unfounded. The volatility in the cryptocurrency market and possible cases of price manipulation are what made him hesitant to approve the VanEck Bitcoin ETF. Recently, however, he talked about some measures that should be put in place to protect investors before the VanEck Bitcoin ETF approval.
SEC’s Jay Clayton Talks About The VanEck Bitcoin ETF Approval
During an interview with FOX News two days ago, the chairman of the SEC, Jay Clayton, highlighted investors protection interest per the VanEck ETF approval. From his comment, Jay Clayton is still concerned about protection for investors and this is why he is yet to approve the Bitcoin exchange tradable fund. He noted that he doesn’t have anything against digital currencies but is only concerned about the manipulations that happen in the space which affects the average investor. In his words:
“What I’m concerned about at the moment is if it can be reasonably demonstrated that the underlying trading is generally not manipulated, it’s happening on reliable venues with good rules and that custody is something we can feel comfortable about.”
When he was asked specifically about whether he would approve the VanEck Bitcoin ETF, he didn’t comment on that. However, he stated that the SEC may consider a Bitcoin ETF approval if the said asset meets their rules. He continued:
“I think this technology has and is already demonstrating pretty significant promise, but it’s demonstrating significant promise in the places where it’s consistent with our approach to capital raising in the past.”
Countdown To VanEck Bitcoin ETF Approval Or Disapproval Begins
A while ago, the SEC announced that it has started its countdown to the approval or disapproval of the VanEck Bitcoin ETF. You’ll recall that VanEck withdrew its Bitcoin ETF application during the government shutdown. The company believed that it would miss its final opportunity to get approved because of the shutdown. Shortly after, the company resubmitted its application.
The cryptocurrency community believes that the chances of Jay Clayton approving the VanEck Bitcoin ETF are getting higher with recent events. During a different occasion this week, the chairman of the SEC confirmed his previous statement about the status of Ethereum. Last year, Clayton broke the internet when he said that Ethereum was not a security. He confirmed his stance last week when he said that Ethereum’s ETH and other cryptocurrencies like Ethereum do not fall under the cryptocurrency category. This time though, he said that the status of a digital asset can change over time with new definitions.
If the VanEck Bitcoin ETF approval comes through, it is expected to be a game changer in the industry. It would serve as a stamp of approval from the SEC and we should expect an inflow of Wall Street money. For now, the only thing anyone can do is wait and see.
What do you think about the VanEck Bitcoin ETF approval? Will the SEC finally approve the Bitcoin ETF? Share your thoughts in the comment section.
Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.
