Bitcoin

SEC Rejects Bitcoin ETFs Because Applicants Do Not Fit The Industry Norm

SEC Rejects Bitcoin ETFs Because Applicants Do Not Fit The Industry Norm

According to the CEO of the crypto, payment startup Abra, the US Security and Exchange Commision (SEC) rejects ETFs because the crypto industry does not fit the applicant archetype.

It seems like the Bitcoin ETF is a never-ending story. Many have applied but have not gotten an ETF approved yet. Two weeks ago, the SEC rejected 9 ETF applications with the motivation that the ETFs need to be designed to prevent fraudulent and manipulative acts and practices, which the currents ETF applications have not.

However, within the SEC, some commissioners do not agree with the decision. Hester M. Peirce announced after the decision of rejecting the Winklevoss twins ETF applications. She said that the Commission’s decision ”undermines investor protection by precluding greater institutionalization of the Bitcoin market”.

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It seems like most people and institutions want an ETF approved but not all are enthusiastic. Andreas Antonopoulos states that it could be a terrible idea. Antonopoulos main problem with a potential Bitcoin ETF does not relate to an investment-standpoint. Rather, he takes issue with the way such a financial product, or the proposal of which, could prove counterproductive to the growth of the Bitcoin ecosystem. That being said, he more recently stated that a Bitcoin ETF is inevitable but still thinks it could be harmful.

Some even seem to think that they have found out way SEC are rejecting the applications. Speaking in an interview with CNBC the CEO of Abra, Bill Barhydt suggests that the SEC has rejected the crypto ETF applications because people do not fit the picture of what the SEC usually approves.

“I think the issue with the SEC, quite frankly, is that the people who are making the applications don’t fit the mold of who the SEC is used to approving,” Barhydt told CNBC’s “

Advocates for cryptocurrencies believe that institutional interest is an important step in transforming the industry into the mainstream, trusted by both banks and consumers. The significant fall this year has lowered investors optimism over whether the ETF will be approved this year.

Bitcoin made the headlines in late 2017 as it made its way to $20,000, and since it has fallen as far as to $7,300 per Bitcoin, the media, as well as interest, is low. Abra’s CEO said that it would take an application that “looks, feels and smells” the way that the SEC wants to get an ETF approved. That is why many have faith in the ETF application from the CBOE that will be reviewed later this year. CBOE has a close relationship with the SEC and has even said that they will back up the ETF with insurance.

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