A commissioner at the U.S. Securities and Exchange Commission (SEC) deems a bitcoin exchange-traded fund (ETF) will eventually be approved.
In an interview posted by Roll Call on February 6, Robert J. Jackson Jr., stated:
“Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so.”
There are several bitcoin ETF proposals filed for SEC approval, but none has got the approval yet.
SEC Chairman Jay Clayton has said he doesn’t see a clear path to a bitcoin ETF approval until problems like market manipulation are addressed.
So far, the SEC has rejected at least 10 cryptocurrency ETF proposals. In August 2018, it rejected seven proposals from Direxion, GraniteShares, and ProShares. The regulator, however, said the following day that it would review the proposals.
In July 2018, the SEC rejected for the second time Cameron and Tyler Winklevoss’ proposal for Bats BZX Exchange listing of bitcoin ETF.
As Jackson discussed Winklevoss’ proposal with Roll Call, he said it was “not a difficult case,” but the harm to investors and risk of manipulation was “enormous,” while the market has severe liquidity problem.
“I’m happy to say market participants have begun to come in with ideas. Whether or not we’re going to find one that really protects investors I don’t know, but I do know that that [Winklevoss] case wasn’t especially close,” he added.
Hester Pierce, another SEC commissioner who has been pragmatic over the probability of a bitcoin ETF, said in July that the Winklevoss’ proposed rule change “satisfies the statutory standard and that we should permit BZX to list and trade this bitcoin-based exchange-traded product (‘ETP’).”
“From my perspective, we need to be mindful of what our role is, and it’s not to be the ones who decide which innovations and which technologies get through and which ones don’t,” Pierce said.
Pierce tweeted on February 7:
“I look forward to working with you @SECJackson to open the doors to innovation.”
The previous SEC rejections have evidently not discouraged many in aiming for the ETF breakthrough.
Last month, Cboe BZX Exchange withdrew its proposed rule change because of the U.S. government shutdown. A few days later, it resubmitted the application, that if approved, would make way for a bitcoin ETF backed by VanEck and SolidX.