SEC Boss Frets on Bitcoin ETF, Dampens Hope of Approval

UTC by Patrick Kariuki · 3 min read
SEC Boss Frets on Bitcoin ETF, Dampens Hope of Approval
Photo: Depositphotos

The waiting list for the BTC ETF approvals includes Trust Skybridge, Fidelity Tree, Wilshire Phoenix among others.

Cryptocurrency stakeholders, particularly ETF managers, who were looking forward to cashing in on the much-awaited cryptocurrency ETFs have been left licking their wounds. Gary Gensler, the SEC chair, comments that dampened their hopes of a Bitcoin ETF this year. Last week while testifying to the financial services subcommittee for the House of representatives, the SEC chair noted that the Cryptocurrency space is faced with challenges and gaps that hinder investor protection. Additionally, he noted that none of the Cryptocurrency trading exchanges has formally registered with SEC.

However, this isn’t the first time the SEC chair has raised his concerns on “lax oversight”. According to cryptocurrency pundits and observers, the comments suggest that SEC is determined to bring the Cryptocurrency market under its regulation before Bitcoin ETF approvals. The waiting list for the BTC ETF approvals includes Trust Skybridge, Fidelity Tree, Wilshire Phoenix among others. Ethereum-based ETFs are also not left behind, thanks to filings from WisdomTree and VanEck to seek approval from SEC last month.

Recently, SEC declined approval requests for some BTC ETFs and even delayed VanEcks ruling which will be sorted in June. The global head at Cboe, a favorite listing exchange, Laura Morrison said that she expected the delay to occur, even with all of their filings.

Initially, Crypto-enthusiasts were elated and optimistic after Gensler’s to the SEC chair. Being a blockchain technology teacher at Institute of Technology (Massachusetts) everyone thought he would positively revolutionize the industry. However, his recent calls for “greater investor protection”, particularly on Bitcoin, caused an uproar. Additionally, the division of Investment Management at the SEC was more warning to investors on the risks associated with the crypto market. Both actions fueled uncertainty for future ETFs approval.

What Cryptocurrency Pundits Think

Craig Salm, the second in command at Grayscale, noted that Gensler wanted to regulate the market. He further suggested that regulating the market is what the SEC boss is looking forward to before he approves the ETFs. Another crypto investing observer thought that Gensler viewed the Bitcoin ETF approval as a means to gain oversight for the general Cryptocurrency market. However, some senior legal executives such as Sherrod Brown and Elizabeth Warren, who believe that Gensler’s concerns are valid, and that caution should be observed before approvals are given.

What the Future Holds

Even with the uncertainty, some Pundits, including fund managers remain positive. One such person is VanEck’s CEO Jan van Eck. He noted that those opposed to the regulation were potentially forcing investors to take risky investments decisions. In the meantime, the eventual fate of the ETF approvals will depend on whether the SEC is convinced that they offer investor protection, noting that cryptocurrencies are subject to price manipulation and volatility.

Bitcoin News, Cryptocurrency News, Editor's Choice, Funds & ETFs, Market News
Patrick Kariuki

Patrick is an accounting & economics graduate, a Cryptocurrency enthusiast, and a Blockchain technology fanatic. When not crafting informative pieces on any of the above subjects, he will be researching on how the Blockchain technology can transform the world, particularly the financial space.

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