Former US Securities and Exchange Commission (SEC) Chair, Jay Clayton, has weighed in on the ongoing applications for Bitcoin (BTC) spot Exchange-Traded Funds (ETFs) by various asset managers, including BlackRock, WisdomTree, and Ark Invest.
Despite the SEC’s cautious approach and the applications facing repeated delays, Clayton is confident that the approval of a Bitcoin ETF is inevitable.
In a recent interview with CNBC, Clayton emphasized the demand from retail investors and the willingness of trusted providers to offer this investment product to the public.
‘BTC Clearly Not A Security’
Several major asset managers have submitted applications for Bitcoin spot ETFs, seeking approval from the SEC. However, the regulatory body has yet to greenlight any of these proposals, resulting in a pause in the approval process.
While the SEC has expressed concerns regarding market manipulation, investor protection, and custody of digital assets, the industry and investors eagerly await a breakthrough.
Clayton made a significant statement in the CNBC interview, stating, “It is clear that Bitcoin is not a security.” This distinction is crucial, as securities fall under the SEC’s regulatory jurisdiction.
Clayton’s perspective highlights the unique nature of Bitcoin as a decentralized digital currency that has gained popularity among retail investors seeking access to this emerging asset class.
Clayton emphasized the growing demand from retail investors to gain exposure to Bitcoin through regulated investment products. In addition, he noted that reputable providers within the financial industry are eager to offer Bitcoin ETFs to the public.
This convergence of investor interest and the desire of trusted providers to cater to this demand adds weight to Clayton’s assertion that the approval of a Bitcoin spot ETF is unavoidable.
While the timing of the approval remains uncertain, Clayton’s comments serve as a reminder of the potential groundbreaking shift that a Bitcoin spot ETF approval could bring. Such approval would give retail investors more accessible and regulated exposure to Bitcoin, potentially driving further adoption and mainstream acceptance of cryptocurrencies.
Seven Bitcoin Spot ETF Applications Face Delays, Eyes Set On October Approval?
As reported by Bitcoinist, the SEC has announced a delay in the review process for WisdomTree’s application for a Bitcoin spot ETF. This delay is part of a series of postponements affecting other ETF applications, including those submitted by Invesco, Galaxy Digital, and Valkyrie Funds.
James Seyffart, an ETF specialist at Bloomberg, has weighed in on the situation, speculating that the review process could be extended by an additional 45 days, potentially pushing the approval timeline beyond October.
Seyffart further expressed his view that there is currently a “zero percent chance of approval before October,” given the prevailing circumstances.
While market participants await further communication from the SEC regarding timelines and next steps, Seyffart’s statement underscores the need for caution. It suggests that the approval process may take longer than initially anticipated.
As the delay affects multiple ETF applications, market participants closely monitor the situation. The SEC’s decision will undoubtedly have far-reaching implications for the broader crypto ecosystem and investor sentiment.
While the exact timeline for approval remains uncertain, industry experts and market participants eagerly anticipate further updates from the SEC as they navigate the complexities of the regulatory landscape.
Featured image from iStock, chart from TradingView.com