Grab a seat and get comfy, because it will take quite a while for the SEC to start approving the Bitcoin ETF applications.
The chairman of Securities and Exchange Commission (SEC), Gary Gensler, voiced his concerns regarding the challenges for investor protection in crypto markets. He said that “none of the exchanges trading crypto tokens has registered yet as an exchange with the SEC”.
Previously, the SEC rejected some of the applications for Bitcoin ETF and has recently delayed the decision on another application.
This is not the first time Gensler pointed out the weakness in the US’ crypto regulation, and his viewpoint implies that the agency wants to try keeping a tight rein on cryptocurrencies before green-lighting bitcoin ETF applications.
“Gensler wants to see regulation there, and if that happens, it seems like that would be what the SEC needs in order to approve a bitcoin ETF,” said Craig Salm, Legal Vice President at Grayscale.
Companies that have submitted applications for Bitcoin ETFs include Fidelity, WisdomTree, Wilshire Phoenix, VanEck and First Trust SkyBridge. A small but growing amount of Ethereum ETFs applications are also joining the wait list.
An executive at a fund management group said that Gensler could be seeing the Bitcoin ETF approval process as a way to gain extra oversight and regulation over crypto exchanges.
Despite the lack of formal approval for ETFs, it has not stopped the demand for bitcoin exposure from growing.