The topic of an SEC-approved Bitcoin ETF is among the most largely discussed ones within the cryptocurrency community. While the Commission has already turned down and rejected quite a lot of propositions, the one that everyone has its sight turned to is submitted by the CBOE and proposed by VanEck and SolidX. This time, however, SEC’s Chairman Jay Clayton said that a Bitcoin-ETF is possible but there’s work left to be done.
Bitcoin ETF Possible
Speaking to CNBC, the Chairman of the US Securities and Exchange Commission, Jay Clayton, said that it’s possible for a Bitcoin ETF to be approved.
Are we any closer to seeing a Bitcoin ETF some day? SEC Chairman Jay Clayton to @CNBC: “yes, but there’s work left to be done” @SEC_News @bobpisani @kellycnbc @CNBCTheExchange #bitcoin #crypto pic.twitter.com/iJP3nn9XHc
— The Exchange (@CNBCTheExchange) September 9, 2019
Now, it’s worth noting that there have been plenty of rejections on behalf of the Commission on numerous propositions, as well as many delays.
In May, the SEC delayed yet again the VanEck/SolidX Bitcoin ETF proposed rule change, stating that it needs additional time to conduct analysis. The same was delayed once again back in August and the final decision is expected to come on October 18th.
Many tend to believe that a potential approval of a Bitcoin ETF on behalf of the SEC would catapult the price into new highs.
Yet, per the latest ruling of the SEC which had the VanEck/SolidX delayed, interested parties had to provide written submissions of their arguments on 14 different topics in order to shed further clarity on the matter.
We have yet to see whether or not the outcome will be any different this time, given the fact that some of the main concerns seemingly continue to persist. Namely, these include price manipulation, as well as the unregulated nature of a lot of the existing exchanges.
There’s Work Left To Be Done
After saying that it’s possible for a Bitcoin ETF to be approved, the Chairman also made significant clarifications, outlining that there’s still plenty of work to be done.
But there’s work left to be done. Those were not trivial questions. How do we know that we can custody and have a hold of those crypto assets? That’s a key question. And an even harder question, given that they trade on largely unregulated exchanges. How can we be sure that those prices aren’t a subject of significant manipulation? Progress is being made but people needed to answer those hard questions for us to be comfortable that this was the appropriate type of product. – Said Chairman Clayton.
Now, it’s worth noting that last year the SEC turned down the application of Cameron and Tyler Winklevoss for a Bitcoin ETF. Back then, one of the Commissioners on the panel, Hester M. Peirce, expressed her serious disagreement, voicing her concerns publicly.
She said that the approach of the Commission “undermines investor protection by precluding greater institutionalization of the bitcoin market.” Furthermore, she also said that by keeping this line of arguments, the Commission “signals an aversion to innovation that may convince entrepreneurs that they should take their ingenuity to other sectors of our economy, or to foreign markets, where their talents will be welcomed with more enthusiasm.”
In any case, we have a bit more than a month to wait before the SEC votes again on the VanEck/SolidX proposition and see if it will get the green light this time.
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