Exchange traders who want to cash in on cryptocurrency trading have been giving themselves longer than expected after regulatory oversight, after Gary Gensler, chairman of the Securities and Exchange Commission, commented on hopes for a quick confirmation of the bitcoin ETF this year.
Testifying before the House Subcommittee on Financial Services last week, Gensler said: “There are many challenges and gaps for investor protection [crypto] markets. ” He added that “none of the cryptocurrency exchanges have yet been registered as an exchange with the SEC.”
This is not the first time the SEC chairman has voiced his concerns careless controlև His position shows industry insiders that the agency wants to try to pull more cryptocurrencies under its regulator before approving a list of dozens of Bitcoin ETF applications from Fidelity, WisdomTree, Wilshire Phoenix, VanEck և First Trust SkyBridge : Joining the Waiting Game is a small but growing amount of ethereal ETFs after VanEck և WisdomTree submitted applications for SEC approval in May.
The SEC rejected Bitcoin’s earlier ETF applications և recently postponed another decision. His decision to introduce VanEck will now come in early June. The agency announced on April 28, hours ahead of schedule.
“I expect it [delay] “To be honest,” said Laura Morrison, Cboe’s global list leader, chosen by many crypto ETFs as a listing exchange.
Fan enthusiasts were initially encouraged by Gensler’s appointment, given that he was out of government when he taught blockchain technology at the Massachusetts Institute of Technology, but he recently called for a special bitcoin for “greater investor protection.” The SEC’s Investment Management Division has warned investors about the risks of the crypto market.
Both actions froze optimism in the largely unregulated $ 2 tonnage asset class. While the Commodity Futures Trading Commission regulates cryptocurrency futures, stock exchanges like Coinbase or Kraken have less control.
«[Gensler] “I want to see a settlement there. If that happens, it seems to be what the SEC needs to approve the bitcoin ETF,” said Craig Salm, Grayscale Legal Vice President Craig Salm. markets.
One of the fund’s executive directors, who looked at cryptocurrencies, said Gensler was likely looking at the bitcoin ETF approval process as a way to gain more control over cryptocurrencies in general.
Gensler’s warning is shared on Capitol Hill, where senior lawmakers such as Democrat Senators Sherod Brown and Elizabeth Warren have said the SEC should to take care of before approving cryptocurrency ETFs.
Some fund managers are still optimistic.
“We have a ‘half-glass’ view of the status of cryptocurrency regulations,” said Ian van Eek, CEO of VanEck. “Those who oppose the bitcoin ETF are effectively forcing investors to access incomplete fund structures, less regulated areas.”
Feedback on recent ETF approvals has not stopped investor demand for bitcoin influence through various market proxies. These include Grayscale Trust երը shares in MicroStrategy, a software company with about $ 4.5 billion in cryptocurrency, and Bitwise’s Crypto Industry Innovators ETF, owned by companies such as Coinbase. This growing market for bitcoin is expanding in the absence of formal approval for ETFs.
The fate of applications for Bitcoin ETFs depends on whether the SEC believes that they have sufficient protection for investors issued in cryptocurrency. prices are volatile և considered vulnerable to fraud: manipulation.
“Given the recent comments from the SEC և Chair աշխատ’s staff, it is reasonable to assume that asset managers are trying to persuade the regulator that their proposed measures will cover investor risks,” said Todd Rosenblut, CFRA
“The regulatory approval process for the US bitcoin ETF seems to be focused on whether they are comfortable with the bitcoin risks involved in the fund; whether the fund may be too large to handle liquidity in the market.”
Fund providers are working on their cryptocurrency ETF software to address regulatory issues. Bitwise, which originally applied for regulatory approval for the bitcoin ETF in 2019 before withdrawing its application after initial rejection, has been reviewing its submission for more than a year.
“We’ve been working on different ways to show that the market is mature enough to meet the needs of our staff,” said Matt Hughes, chief investment officer.
Regulators in other countries have approved bitcoin ETFs, unleashing more than $ 1 billion in total revenue. The Canadian Purpose Bitcoin ETF, which started trading in February, reached more than $ 1 billion in assets in less than two months. Several commodity exchanges in Europe are listed in Germany and Switzerland.
It is not uncommon for US regulators to take years to approve new ETFs. Still, the crypto crowd is disappointed with the lengthy process.
“The bird lives in the dog years,” said Bitwise’s Hugan. “A week in the stock market is like a year in the capital market.”