In a recent interview, U.S. Securities Exchange Commission (SEC) Commissioner Robert J. Jackson Jr informed that the Bitcoin ETF (exchange traded fund) filing will finally clear all of the required standards set forth by the body.
He stated that an SEC-approved Bitcoin ETF is inevitable. Till date, the Commission has rejected all the past filings submitted by different crypto companies looking to launch a Bitco. Moreover, getting the stamp of approval from the most liquid capital markets in the world is hard.
The beliefs of Jackson are indicative of the argument consistently put forward by the Commission against Bitcoin ETFs. The SEC has many times brought up issues relating to liquidity, custody, and market manipulation in the blockchain industry. In July 2018, the Winklevoss application for Bitcoin ETF was rejected because of the inability of the trust to satisfy the SEC’s standards on preventing fraud and market manipulation.
As New York Stock Exchange and the Nasdaq already have monitoring tools in place, and those kinds of safeguards do not exist in all of the exchange venues where digital currencies trade. This is key reason that SEC wants to see key upgrades, especially better market surveillance and custody for cryptocurrencies before approving a bitcoin ETF.
However, the quest for an SEC-approved BTC ETF continues in 2019. Last month, Bitwise had filed another application after being rejected by the SEC in 2018. After initially withdrawing the VanEck/SolidX BTC ETF proposal, Cboe has also refiled the application.
After Gemini become the first to pass SOC-2 examination, now Winklevoss is trying hard to get approval of their COIN Bitcoin ETF.
When the first possibility of a Bitcoin ETF made its mark in crypto market, investors within and without the cryptosphere were abuzz with excitement. The continuous changes in the Bitcoin ecosystem have lowered the need and demand for an ETF. If compared with the past crypto market trends, Bitcoin has become less restrictive and is now more easy to acquire. And, many institutions are already getting exposure to Bitcoin via CME/CBOE futures.
Thus, an SEC approved Bitcoin ETF would be a notable landmark in blockchain industry but the effects and monetary inflow will not be as profound as seem.
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