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- 1 SEC might disapprove of Bitcoin Spot ETF.
- 2 Former SEC officials refer to regulatory obscurity and other factors to blame.
While everyone is waiting for Bitcoin Spot ETF’s approval, former SEC official John Reed Stark believed SEC might never approve it. On August 16, 2023, Jacobi FT Wilshire Bitcoin ETF was approved in Amsterdam, though the BTC price remained unchanged. The market expects the Securities and Exchange Commission (SEC) to give the nod soon, but it might not happen, says John Reed Stark.
Bitcoin Spot ETF in America Might be a Dream, Says John Reed Stark
On August 19, Stark posted on X (previously known as Twitter) stating that “The chances for SEC approval of a Bitcoin spot ETF are Slim and None (and Slim just left the town).” He called cryptocurrency a “cesspool of grift, fraud, and chicanery.” Previously John Reed Stark had also anticipated the resignation of chair Gary Gensler.
While referring to August 2, 2023, the report claimed that various bots on X, after the post of the likes of Elon Musk, significantly boosted crypto prices. The report also cites the jump in coins traded by Alameda Research, a sister company of now-bankrupt FTX, before its collapse in November 2022.
The research claims that whenever Elon Musk X-ed (twitted) about any altcoin, the price surged by nearly 50% in a day. NCRI researchers scrutinize the posts from January 1, 2019, to January 27, 2023. Mainly related to 18 different cryptocurrencies in tandem with New Jersy GovSTEM scholars, Stark says that such findings showcase the obscurity of the crypto industry.
How Current Crypto Scenario is Affecting Bitcoin Spot ETF’s Future?
Crypto works solely on mathematical computations, a methodology that makes it unique. But there is no method available to value this computation. Additionally, Stark says there are no fundamentals, balance sheets, products, cash flow, and management. He also referred to the current scenario of cryptocurrency regulation in the United States.
The current scenario seriously needs more regulatory oversight, consumer protection, transparency, licensure, insurance, and net capital requirements, and needs more consumer protection. John Reed Stark suggested that the SEC might change its views about Bitcoin Spot ETFs as November 5, 2024’s election day closes. He also predicts that Gensler might resign.
Stark also dubbed the lack of regulatory oversight a significant factor for rejecting Bitcoin Spot ETF approval. The recent crackdown by the financial watchdog on the crypto industry swelled by 183% after FTX-saga. Moreover, the Lummis – Gillibrand bill, also known as the Responsible Financial Innovation Act (RFIA), might soon be used to regulate the crypto industry in the United States, but it’s a long shot.
Experts were sure of BlackRock winning the approval for Bitcoin Spot ETF, considering its history of successfully launching ETFs. Even if the SEC has accepted its request song many others, the final decision is still pending. The market anxiously waits for approval, which might or might not happen.
No one can say the exact date for BTC ETF approval,l, but Stark thinks an Ethereum ETF might arrive sooner than expected. On August 17, a report surfaced that the SEC might soon approve an Ethereum Futures Exchange Traded Fund (ETF) in October 2023. Unlike BTC ETF which provides exposure to the BTC market price directly, ETH ETF would track the price of Ethereum futures traded on the Chicago Mercantile Exchange.
It might be too early to comment on the after-effect of Bitcoin Spot ETF approval or what changes it shall bring to BTC. The former SEC Official already throws the possibility of approval out of the window.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
