With New SEC Officials, Will It Be More Difficult to List Bitcoin ETFs?

A large number of cryptocurrency ETFs have applied to go public, and the SEC’s newly appointed chairman Jansler is very cautious about it.

With New SEC Officials, Will It Be More Difficult to List Bitcoin ETFs?

Bitcoin is the world’s largest cryptocurrency. According to the latest data, Chicagoland (CME) micro bitcoin futures traded more than 100,000 copies in the first six days of the new contract’s listing. Meanwhile, attempts to list bitcoin ETFs in the U.S. have been ongoing for nearly a decade. Since 2013, however, U.S. regulators have rejected all applications, citing manipulation and criminal activity concerns.

However, with new leadership at the U.S. Securities and Exchange Commission (SEC), Wall Street’s growing appetite for cryptocurrencies, and the launch of a similar fund in Canada, many industry supporters generally believe that applications for bitcoin ETF listings are expected to be approved this year. Earlier, Chicago Board Options Exchange Global Markets Inc. (Cboe Global Markets Inc.) applied to the SEC to list a Fidelity Bitcoin EFT, saying the potential for bitcoin manipulation has been greatly reduced. In fact, a large number of crypto ETF applications have been filed this year.

Proponents predict that the new chairman, Jens Lehrer, who was just sworn in, will be more accommodating and open to these applications compared to the SEC’s former chairman predecessor, Jay Clayton, because he has taught blockchain-related courses at MIT’s Sloan School of Management and is familiar with this financial technology, making it more likely to approve crypto products.

In a recent appearance, however, Jansler was unexpectedly neutral on bitcoin, saying that the cryptocurrency market could benefit from greater investor protection and urging lawmakers to give the SEC regulatory authority over exchanges. This certainly throws cold water on cryptocurrency and ETF enthusiasts, and also shows that the SEC’s regulatory regime for the crypto industry is not yet mature.

Ben Johnson, global director of ETF research at Morningstar, said.

“The SEC has made their priorities clear, and clearly regulating cryptocurrency ETFs is not among them. The likelihood of a bitcoin ETF being approved in 2021 is very low.”

For previously submitted applications, the SEC has postponed the deadline for making a decision, and Janssler’s latest review of cryptocurrency exchanges suggests that the SEC is being very cautious. After all, cryptocurrency trading disruptions are still relatively common, and cryptocurrency trading centers are subject to less regulation than traditional exchanges.

The good news, though, is that the SEC has now confirmed three bitcoin ETF applications, meaning that the SEC will have to make a decision sooner or later, and it has a limited amount of time to approve or reject them. However, Dave Nadig, chief investment officer at data provider ETF Trends, said it is unlikely that these applications will be approved in their current form, given Jansler’s recent comments.

On the other hand, investment banking institutions continue to accelerate their efforts to improve Bitcoin’s access mechanism. UBS (15.11, -0.32, -2.07%) is planning to offer digital currency investments to affluent clients and, along with the U.S. firm, is seeking broader investment channels to meet client demand.

The Swiss firm is said to be looking at a variety of options for offering this asset class. Because of the volatility, any investment product would represent only a small portion of a client’s total assets, and there are a variety of investment options, including the use of third-party investment vehicles, people familiar with the matter said. In a statement, UBS said.

“We are closely monitoring developments in the digital asset space. Importantly, we are most interested in the distributed ledger technology behind digital assets.”

A growing number of securities firms around the world are offering cryptocurrency services. Goldman Sachs (359.92, -8.76, -2.38%) is delving further into the $1 trillion bitcoin market and opening up principal-free delivery forwards linked to bitcoin prices, usually in cash; Morgan Stanley (84.92, -1.55, -1.79%) plans to offer three funds to wealthy clients, thereby holding cryptocurrencies. Bank of New York Mellon (51.58, -0.69, -1.32%) is building a platform to merge traditional and digital assets; Citigroup is also considering offering crypto trading services.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/with-new-sec-officials-will-it-be-more-difficult-to-list-bitcoin-etfs/
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