The crypto community finally gets some good news regarding the Bitcoin ETF.
SEC Commissioner Robert J. Jackson Jr. has recently said that he expects a Bitcoin ETF to be eventually approved because there will be a proposal that will be able to finally satisfy the SEC’s requirements.
This brings a ray of hope in the hearts of crypto enthusiasts who have been waiting and hoping for this move for quite a while now.
The SEC rejected a lot of BTC ETF proposals so far
The SEC has already rejected and delayed a lot of such proposals because they were not meeting all the requirements.
The Adjunct Professor at NYU Stern Drew Hinkes believes it’s just a matter of time until a Bitcoin ETF is approved.
He said “Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so. Getting the stamp of approval from the deepest and most liquid capital markets in the world is hard, and it should be. Once we make it available to everyday mom and pop investors, we are taking risks that Americans can get hurt,” reports CryptoGlobe.
Main issues that led to the SEC’s rejections
These comments come after the SEC rejected many proposals based on issues such as the crypto ecosystem’s liquidity, price manipulation and also concerns regarding custody.
Back in August 2018, the SEC has rejected nine BTC ETF proposals from ProShares, Direxion, and GraniteShares.
#SEC Commissioner Jackson in an interview to be published next weeks is optimistic that a “fund based on #bitcoin” will eventually be approved, expresses concern about the proposed ETFs submitted to date. pic.twitter.com/3BCuiBd4CB
— Drew Hinkes (@propelforward) February 5, 2019
These proposals were based in Bitcoin futures and were not backed by “physical” Bitcoin.
Jackson addressed the proposal coming from the founders of the Gemini exchange, the Winklevoss twins and said that the case was not a difficult one because the risks for manipulations were huge.
The approval of a BTC ETF is essential for the whole crypto space, and this is the reason for which everyone’s excited for the SEC to approve a proposal already.
Giving more legitimacy to the space would definitely start attracting more institutional investors.