BTC Wires

SEC Commissioner is Quite Optimistic About Bitcoin ETF, But Approvals Might Get Delayed

There are numerous Bitcoin ETF applications and proposals pending with the Securities Exchange Commission (SEC) for over six years. A Bitcoin ETF (Exchange Traded Fund) approval would enable the US markets to trade on Bitcoin prices without really buying or selling Bitcoin. If approved, the Bitcoin Exchange traded fund would track the prices of the underlying asset which could be Bitcoins, altcoins, equities, bonds or asset of any class.

The SEC is responsible for approving and denying any specific request to launch a new ETF. Currently, there are around 9 Bitcoin ETF applications are pending with the SEC. Also, the Exchange Traded Fund (ETF) is not just limited to the Bitcoin, and there has been a request for Ethereum and Bitcoin ETF as well.

It is being estimated that once approved, ETF applications can lead to a market of $5 trillion, and even if 1% of the total ETF is based on Bitcoin, then it would lead to an increase of $50 billion in Bitcoin’s market capitalization. There hasn’t been any specific reason from SEC regarding the continuous delays in the approval, however one SEC commissioner has assured that ETF approvals are definitely on SEC’s cards and she is quite optimistic about its future.

Jake Chervinsky, an Attorney at Kobe and Kim LLP. recently commented,

“The SEC delayed the Bitwise bitcoin ETF two days ago but still hasn’t made a decision on VanEck. This is unusual: the SEC would normally handle both ETFs at once. The VanEck deadline is next Tuesday. I still think the delay is overwhelmingly likely, but the timing has me curious.”

The comments from Chervinsky surely seems to be bullish, however, the approval deadline for Bitwise ETF has already passed on 16th May, while the deadline for Van Eck proposal in 21st May. Apart from that the SEC commissioner Hector Pirce, in a recent interview with CNBC has hinted that the approvals might get further delayed. Price said,

“I am still optimistic. Don’t hold your breath. Market manipulation are issues that get a lots of attention at the SEC.”

The comments by the SEC commissioner sure hints toward another delay, but what must be noted here that the SEC is definitely thinking about it, and a delay in approval is still better than an outright denial.