There are 13 Bitcoin ETF applications pending SEC approval

Last month, the US Securities and Exchange Commission delayed another Bitcoin ETF application, this time from Cboe Global Markets.

According to the SEC, 13 Bitcoin ETFs are currently waiting to be approved by the SEC Business Insider. Some fund managers say the situation suggests double standards. More worryingly, the backlog is also showing anti-crypto sentiment.

Bitcoin lacks investor protection?

The Bitcoin ETF follows the price of the digital currency and allows investors to buy into the ETF without trading Bitcoin. In other words, it allows exposure without having to deal with the custody and security issues associated with owning cryptocurrencies.

This form is suitable for mass market investors, and if such an investment product existed in the US, it would allow enormous capital inflows into the Bitcoin market.

SEC Commissioner Hester Peirce recently commented that the SEC’s approach to the matter is out of date and in fact violates two standards. She said a Bitcoin ETF should have been approved a long time ago.

In this regard, SEC chairman Gary Gensler previously raised concerns about fraud, volatility and market manipulation. He recently told CNBC that the crypto spot market doesn’t have the same investor protection as the stock or derivatives market.

“Investors should note, I am saying this in my own opinion, that the underlying bitcoin spot markets do not have the same control as the exchange or the market. Derivative … “

What ETF Candidates Are Saying

Proponents of Bitcoin ETFs say that there are problems such as fraud, volatility and manipulation in the old markets as well. But that hasn’t stopped the SEC from approving ETF products based on these markets. Why is that blocked in the crypto market?

Will Rhind, CEO of GraniteShares, who filed for a Bitcoin ETF in 2017, calls the discomfort surrounding Bitcoin fraud and manipulation a false distraction. He pointed out that ETFs can also be found in many penny stocks and oil stocks.

“There are many markets that are open to manipulation, but that doesn’t prevent them from existing there or from bringing products to market.”

Ryan Louvar, General Counsel at WisdomTree, which manages several Bitcoin ETFs in Europe and applied for a Bitcoin ETF in the US in March, disagreed with Rhind’s view. Louvar said demand has not let up while the SEC continues to delay. The end result is that “crypto-curious” individuals are left with more questionable decisions.

However, Greg King, CEO of Osprey Funds, said the SEC was on track to approach the matter with caution. He indicated that the green light could have other effects.

“You have to think in their heads – how is this supposed to set a precedent for everything else?”

Bao Cong

According to Cryptoslate

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