Bitcoin ETF: the SEC looks to be in no hurry for the approval due to ongoing concerns
Home News Bitcoin ETF: the SEC looks to be in no hurry for the approval due to ongoing concerns
Marcus Misiak –
Jay Clayton, Chairman of the American stock market regulator – the Securities and Exchange Commission (SEC) has emphasized at a conference in New York that it currently remains unlikely that in the near future an exchange-traded Bitcoin Fund (ETF) will be approved.
The Chairman of the Securities and Exchange Commission, Jay Clayton is the man who can give the “green light” to approve a Bitcoin ETF. At a conference in New York, Clayton called, however, the same concerns, the Securities and Exchange Commission issued previous Bitcoin ETF proposals, such as the Bitcoin ETF, the Winklevoss twins refuse: fear of market manipulation, lack of safety measures and too little protection for investors.
Clayton said, as reported by CNBC,
What investors expect is that the trade with the commodity underlying the ETF, a useful trade is free from the risk or the significant risk of Manipulation. This kind of protection measures does not exist in many of the markets where digital currencies are traded.
Clayton also said that he wanted to see a better market surveillance and storage of digital currencies, before he could make friends with a crypto-ETF. The New York Stock Exchange and the Nasdaq have so-called “surveillance” or systems that monitor fraudulent and manipulative activities in the stock markets, prevent and investigate. Clayton said:
This kind of protection measures are currently not at all the stock exchanges where digital currencies are traded.
However, there are also “pattern examples”. In April, the Nasdaq announced a partnership with the Winklevoss exchange, Gemini, which by the Deal have access to Nasdaqs monitoring technology.
The custody needs to be improved
Other concerns that Clayton mentioned, related to the storage or the storage of digital Assets. Clayton said:
We have seen some thefts of digital Assets that make you scratch your head.
While there are now numerous of Custody solutions for crypto-currencies that have been announced or are already on the market. Fidelity said in October that it is a private company established, the currencies, the custody of Crypto and the execution of transactions for institutional investors. The companies Coinbase, Gemini, BitGo, Ledger, and the Japanese Bank Nomura is also working on such solutions, also for institutional investors. But Clayton said that they “need to be improved and hardened”.
The approval of a Bitcoin ETF could cause a wave of Confidence, which will affect the market prices and a reversal of the trend in the bear market. To the extent it is, but seems to have a lot of work in the crypto market flow when it comes to Jay Clayton.