- Bitcoin ETF has seen immeasurable rejections by the Securities and Exchanges Commission
- Hester Pierce believes that the regulator should have shown green to such ETFs some years ago, and SEC should have applied its standards to documentation related to the crypto assets
- Pierce believes that concerns regarding manipulations are over as everything has changed and the Bitcoin market also has enough participants
- Where the SEC has delayed its final decision on VanEck’s proposal, Canada is already having three such instruments in the nation
Bitcoin ETF or exchange-traded funds have been seeking approval in the United States for several years. Several investments and asset managers have proposed such ETFs to the US Securities and Exchanges Commission (SEC). However, for several years none have received approval for such financial instruments. Notably, after Gary Gensler was appointed as the SEC chair earlier this year, the regulator approved the first such proposal. Still, the regulatory body showed concerns and delayed the final decision.
Immeasurable rejections for the Bitcoin ETF
The US SEC has received several proposals for Bitcoin ETF over the last few years from a number of exchanges and financial institutions of the nation. However, the cryptosphere has witnessed immeasurable rejections for the financial instruments that track Bitcoin’s performance. Since then, it has become the most frequently asked question when the regulator will approve the financial instrument.
Recently, CNBC interviewed Hester Pierce, where she deemed that the regulator should have approved the instruments some years before. Pierce, who is also known as the “Crypto Mom,” is also a member of the regulatory body and a bigger crypto proponent.
Why SEC should’ve approve the ETF’s proposal?
Pierce noted concerns about the potential market manipulation and liquidity used to make sense about a decade ago. However, things in the financial world have already changed. Simultaneously, the Bitcoin market has also evolved over this year which now has enough participants globally.
Pierce believes that if the regulator had applied its standards to documentation related to the crypto assets, they would already have approved at least one of such ETFs. The rationales for showing a red signal to Bitcoin ETF seem to go weaker on a daily basis.
Last year, the SEC Commissioner had revealed that the regulator applies a unique heightened standard for cryptocurrencies. Moreover, Pierce argued that the regulators asked exchanges and would be an ETF sponsor for assurances. Indeed, the factor would be beyond what the agency asks for traditional equity-based instruments.
Canada has surpassed the United States
The US has plans to show a green signal to the proposal of VanEck for the Bitcoin ETF. However, the agency then began to review some efforts and delayed its decision. On the other hand, Canadian regulators took a little pace and surpassed the US. Currently, Canada has three ETFs operating since the beginning of this year. Notably, the Canadian approach remained a favorable one in the ecosystem.