Last month, the Securities and Exchange Commission (SEC) delayed another Bitcoin ETF application, this time from Cboe Global Markets Inc. The US regulator said it would seek more public consultations on the matter before making a decision.
That makes 13 Bitcoin ETFs currently awaiting approval, according to Market Insider. Some fund managers say that this situation indicates a double standard. Even more worryingly, the backlog also suggests anti-crypto sentiment.
Bitcoin lacks Investor protection
A Bitcoin ETF would follow the price of the digital currency, allowing investors to invest in the ETF without buying Bitcoin itself. In other words, it allows engagement without having to deal with custody and security issues that come with owning cryptocurrencies.
This type of trade-off is suitable for mass market investors and, if such an investment product existed (in the US), would open capital inflows into the Bitcoin market.
SEC Commissioner Hester Peirce recently commented that the authority’s approach is outdated and even borders on a double standard. She said that a Bitcoin ETF should have been approved a long time ago.
Regarding the matter, SEC Chairman Gary Gensler has previously raised concerns about fraud, volatility and manipulation in the underlying Bitcoin market. He recently told CNBC that crypto spot markets don’t have the same investor protection as stock or derivatives markets.
ETF applicants have a different opinion
Proponents of Bitcoin ETFs say that problems such as fraud, volatility and manipulation also exist in the old markets. But that hasn’t stopped the SEC from approving ETF products.
Will Rhind, the CEO of GraniteShares, who applied for a Bitcoin futures ETF in 2017, called the unrest around Bitcoin fraud and manipulation a misleading distraction. He points out that ETFs for penny stocks and oil also exist.
Ryan Louvar, general counsel at WisdomTree, which manages several European Bitcoin ETFs and applied for one in the US in March, joins Rhind’s view. Louvar said that while the SEC continues to delay, demand does not subside. The bottom line is that„crypto-curious & # 8220; individuals are left with more questionable choices.
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Text credit: cryptoslate