Two more refusals – Since great success of the first ETF on Bitcoin (BTC) accepted in October 2021, the cryptosphere has been eagerly awaiting an ETF that is not based on BTC futures. Corn the SEC just to rejectonce again, fund proposals based on real BTC.
SEC blocks physical Bitcoin ETFs
From November 2021, we feared the worst. Indeed, past the euphoria of accepting first exchange traded funds (exchange-traded funds/ETF) based on Bitcointhe Securities and Exchange Commission (SEC) has played a dirty trick on the cryptosphere, by refusing a physical ETF, says “spot”.
This was all the more worrying as the same company, VanEckwas seen, on one side, to agree at the same time an ETF based on futures contracts (future) of Bitcoin and, on the other side, refuse an ETF physical. The latter are based on real bitcoin underlyings, while those based on future are simply indexed – in dollars – to the Bitcoin price.
And these fears were justified, since absolutely any Spot ETFs BTC has not passed since. This March 10, 2022, 2 SEC publications reveal that it has rejected once again the proposals of 2 companies, NYDIG and GlobalX. The first fund was carried by the New York stock exchange of NYSE Arca, and the second by the Chicago stock exchange of CBOE BZX.
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Always the same excuses about surveillance ” insufficient » of the crypto market
As with its previous refusals, the American regulatory authority has once again claimed a certain immaturity of the crypto-asset market. The monitoring of transactions, and therefore the ability of financial actors to prevent fraud/money laundering, still seems insufficient for the SEC.
“This order disapproves of the proposed rule change (…) The Commission finds that the NYSE Arca exchange has failed to meet its burden (…) of demonstrating that its proposal complies with the requirements of Section 6( (b)(5) of theExchange Act, in particular to the requirement that the rules of a national securities exchange must be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest’. »
As long as there is no change among the members of this US Securities Commission, there are little chance that a spot Bitcoin ETF manages to pass in the short term.
The thing is all the more true that with the departure of pro-crypto Elad Roisman from the SEC in December 2021, only the commissioner remains Hester Peirce to defend the crypto sector. If Bitcoin and its ilk eventually finally have a clear regulatory framework (and not too restrictive), also perhaps the crypto-asset market will eventually mature enough for the SEC’s taste.
The time for regulation has come, and with it the time for uncertainty. It is ESSENTIAL to make your stablecoins work safely. Earn interest with your USDC on Kucoin Lending (affiliate link).