Bitcoin ETF: the SEC Chairman Clayton sees a need for improvement
The Wait for a Bitcoin ETF (Exchange Traded Fund) could still take some more time. On Monday, the Chairman of the us securities and exchange Commission, Jay Clayton noted in an Interview that the SEC is still very critical to the approval of a Bitcoin ETFs.
Slowly and gradually, the decision closer to the dates for the next Bitcoin ETF applications. During the most anticipated Bitcoin ETF from VanEck, and SolidX on 18. October is chosen to be the Bitwise Bitcoin ETF on 13. October and Wilshire Phoenix already on the 29. September receive a decision.
Accordingly, the Hype is slowly starting again, to concentrate on a Bitcoin Exchange Traded Funds (ETFs). This was, however, slowed down sharply yesterday, as the Chairman of the Securities and Exchange Commission (SEC) stated that a publicly available ETF that tracks the Bitcoin price is still a couple of obstacles to overcome. Jay Clayton, a well-known critic of Cryptocurrencies in the SEC, said on Monday, compared to the CNBC Segment of “The Exchange”, Bitcoin, ETFs are Mature closer to the market, but “there is still much to do”.
Clayton re his frequent criticism of repeated points on the crypto currency market and touched on the fact that Bitcoin is at risk because of the “trade is largely unregulated markets” very strong Manipulation. He then added that in order that the SEC can move to only one ETF is eligible, proper custody of the assets is required. However, there is probably progress, as Clayton said:
We are busy, but there are a few things that we need to feel good. The first of the Custody Service The Custody Service is a long-standing requirement in our markets, and if one says he has something, he has it really.
The second and most pressing Problem is the question of market manipulation. In spite of the progress for institutional investors, a large number of small investors is to spot exchanges. Allegedly, these exchanges are involved in all sorts of unethical trade practices. One of the biggest Concerns of the market, “the fake reported trading volume” data, so Clayton are:
A still more difficult question, given the fact that you are trading in largely unregulated exchanges, is, how can we be sure that these prices are not manipulated significantly? The people had to answer these difficult questions so we could feel comfortable that this is the right kind of product.
Why is an ETF of importance?
In the course of the year 2019, the crypto market in the United States has made for institutional investors, a number of advances. The much-anticipated Bakkt Futures are on 23. September go live. Self-VanEck, the application has a in the SEC’s pending ETF, has recently launched a limited edition Bitcoin Trust for investors. Nevertheless, the ETF is still essential. ETFs can be included in the Portfolio of the average investor. It can also be in mutual funds, and other benefits included.
The SEC is concerned primarily with the risk and the safety of the small investor. Therefore, she takes a slow approach. Interestingly, the first Gold ETF was launched in the year 2004. Given the long history of Gold ETF for Bitcoin might take a while longer.
Featured Image: Mark Van Scyoc | Shutterstock
