What is the ramifications of a Bitcoin ETF that is delayed?

Spread the love

The US Securities and Exchange Commission has yet to formally sanction Bitcoin ETFs, having previously just acknowledged VanEck’s filing for a $5 trillion ETF. The federal agency is grappling with many ETFs that are pending clearance, but the SEC’s denial of ten such Funds attracted fire from Commissioner Hester Peirce once more.

Peirce, also known as ‘Crypto Mom,’ noted that the approval of Bitcoin ETFs has been long overdue.

Meanwhile, two of the largest cryptocurrencies Bitcoin and Ether have performed exceptionally well with a price hike of 823.6% and 1266.3%, respectively. Among growing retail interest, which saw the global crypto population cross 100 million users, corporates are showing increasing interest too. For example, payments network giant Visa decided to settle transactions in USDC over the Ethereum blockchain.

As interest in crypto assets increases, new Bitcoin ETF applications can make their way back to the Commission. Peirce revealed that while the SEC reviews these applications “against the facts and conditions,” people look at “past rejections and try and find out what it is they need to address.”

Bitcoin’s price success, according to Peirce, is not the SEC’s “job.” She claims that the “bigger driver” is that merchants can now access Bitcoin and Ether through “a number of avenues” or “other ways.” She continued, saying:

And I guess the question will be at what point do we start to say: “Wait a minute, retail investors are accessing this stuff in other ways. Would it be better for us just to allow them to access it through these more standard exchange-traded products that are more familiar?”

However, the Brazilian Securities and Exchange Commission recently approved the first Bitcoin ETF in the Latin American region. Following the announcement of three Bitcoin ETFs in Canada earlier this year, this regulatory approval represented the second time a conventional exchange agreed to list a Bitcoin ETF.

RECOMMENDED READ:  Reddit reminisces about the now-defunct 'Bitcoin faucet' website that gave away 19,700 BTC for free.

Peirce said that she could not forecast the Commission’s potential position on ETFs because “the norm” that the SEC has applied “is different” from what has been applied “to other categories of goods.” She did, however, mention that “a new chairman” may “rethink the approach” to approving exchange-traded securities.

Although many in the crypto field are looking forwards to the appointment of crypto-friendly Gary Gensler, Peirce said that it is “important to balance expectations:”

“I think it’s really wonderful to have someone coming in who knows the industry quite well and has spent time interacting with people who are actually building stuff. He’s going to have a very busy agenda—much of which will have nothing to do with crypto. So it is important to manage expectations a bit. But I do think that he is someone who is sympathetic to the call for regulatory clarity.”


 214 Interactions,  4 today

Why you need to keep an eye on these altcoins: ATOM, BNB, and THOR

Although eight of the top ten altcoins by market capitalisation are on the rise, there are many altcoins with smaller Read more

RECOMMENDED READ:  Is there a fix for copyright woes? Here's how NFTs have the potential to boost innovative industries.
Token Registry for on-chain identifiers iintroduced by Cardano.

For quite some time, the Cardano Foundation has been working towards a more open network. To support this vision, it Read more

Bitmain’s latest Ethereum ASIC mining rig could not solve the GPU shortage.

A new Ether ASIC mining rig is on the way, but can it support Nvidia's GPU problems? On April 16, Read more

The Nigerian Securities and Exchange Commission (SEC) claims that the central bank’s crypto ban has caused business disruption.

The Nigerian Securities and Exchange Commission says it is collaborating with the central bank to develop a regulatory system for Read more

Bitcoin is down as Turkey’s central bank cracked down on cryptocurrency transfers.

Bitcoin has had a decent few months, with the world's biggest blockchain reaching its all-time high on the charts fewer Read more

Lover of “dogs and memes”, Elon Musk accused of pouring “jet fuel” on GameStop and Bitcoin at a critical moment

How much jet fuel is needed to send GameStop, Bitcoin, and Dogecoin to the moon? Depending on where you stand Read more

RECOMMENDED READ:  Ripple executives file requests to cancel the XRP case, alleging a ‘failure to allege recklessness.'
The Massachusetts Securities and Exchange Commission is attempting to suspend Robinhood’s broker-dealer licence.

According to state authorities, Robinhood has threatened novice buyers. The Securities and Exchange Commission of Massachusetts is attempting to suspend Read more

When it comes to crypto policy, are Biden and Yellen on the same page?

The lack of a centralised regulatory body for digital assets has long been a barrier for crypto-investors in the United Read more

Dogecoin doubles in a single day, bringing its year-to-date profits to 5,000 percent, as the price of Bitcoin falls.

The most famous meme of all time In a single year, bitcoin has increased by 12,600%, resulting in a slew Read more

Turkey is considering a moratorium on blockchain transfers.

The central bank of Turkey has also prohibited payment providers from providing fiat-to-crypto onramps for cryptocurrency exchanges. In Turkey, a Read more

Why draconian crypto regulations can jeopardise the United States’ global competitiveness- Brian Brooks

Brian Brooks has defended the fintech charter he supervised as chairman of the OCC, arguing that heavy-handed crypto rules could Read more

Blockchain is difficult to understand for both developers and everyday users. Is that becoming more straightforward?

For years, the blockchain community has recognised that systemic hurdles must be removed before mass adoption can take place. Is Read more

Leave a Reply

Contact Us