Developments

SEC commissioner says a Bitcoin exchange-traded fund (ETF) is likely to be approved soon

Robert J. Jackson Jr., who is a commissioner with the U.S. Securities and Exchange Commission (SEC) recently speaking to Roll Call said that a Bitcoin exchange-traded fund (ETF) is likely to be approved soon.

He is quoted saying:

“Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so.”

Last year saw the SEC reject over 10 Bitcoin exchange-traded fund (ETF) proposals including seven from ProShares, GraniteShares, and Direxion. But a day later the agency said it would review the filings. The agency has also rejected two proposals from the Tyler and Cameron Winklevoss.

Jay Clayton, the chairman of the SEC, has already made it clear that until concerns of market manipulation are addressed, he doesn’t see an ETF getting approved any time soon.

However, according to Jackson, this is likely to change. He is quoted saying:

“Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so.”

Jackson goes on to discuss why the SEC rejected the Winklevoss proposal stating that the market was prone to manipulation and this had enormous potential to harm investors. Also, the market had a “serious liquidity” problem.

Adding:

“I’m happy to say market participants have begun to come in with ideas. Whether or not we’re going to find one that really protects investors, I don’t know, but I do know that that [Winklevoss] case wasn’t especially close.”

Recently, Cboe refiled the VanEck/SolidX proposal after the US government shutdown came to an end last month. If approved it will be the first Bitcoin exchange-traded fund (ETF) the crypto market has seen.

Do you agree with the SEC commissioner that we are likely to see a Bitcoin ETF approved soon? Share your thoughts in the comment section below.

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Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology.

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