SEC Chairman Admits Progress for Considering A Bitcoin ETF, But Still Some Work Needs to Be Done

11. Sep 2019 Posted by Akolkar B on News

It has been a year that investors are waiting on the sidelines for the U.S. to give a nod for Bitcoin ETF. However, the ETF-regulator has been firm of not approving a Bitcoin ETF until the crypto market addresses issues related to market manipulation.

In a recent interview to CNBC’s Bob Pisani, SEC Chairman Jay Clayton admitted that there’s some progress ahead and we are moving closer to having the first full-fledged Bitcoin ETF.

Clayton said that before the SEC makes a final decision, they still need to have more clarity on custody along with other issues of price manipulation. “How do we know that we can have custody and have a hold of these crypto assets? That’s a key question. An even harder question given that they trade on largely unregulated exchanges, is how can we be sure that those prices aren’t subject to significant manipulation?” asked Clayton.

He further added that “Now, 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.”

SEC Commissioner Hester Pierce, popularly known as ‘crypto mom’ for her pro crypto views, slammed the agency for its negative attitude towards Bitcoin ETF products. She added that SEC considers the Bitcoin market as messy and thus they don’t like them.

Sec Chairman’s comments come just a week after VanEck and SolidX launched a ‘limited Bitcoin ETF’ earlier this month. Note that this is not a full-fledged ETF and will be available only to institutions like banks and hedge funds, but not retail investors.

Ed Lopez, head of ETF product at VanEck, said: “Unlike an ETF it isn’t listed on a national exchange, rather it is quoted on the OTC Link ATS platform. This is a first-of-its-kind type of offering. Given it will trade over-the-counter via broker-to-broker transactions, we’ve been casually referring to it as a Broker Traded Fund, a BTF”.

Earlier in July 2019, Gabor Gurbacs from VanEck said that the SEC should soon approve a Bitcoin ETF as it could be the major driver of the economy for the next ten years.

“We are waiting finally for regulators to approve a bitcoin ETF, which would bring digital assets under the regulated American capital market,” Gurbacs said. “This could be, for the next decade, the driver of our economy.”