SEC Commissioner: Bitcoin ETF Could Take Years




A commissioner from the U.S Securities and Exchange Commission (SEC) has said that institutionalization of cryptocurrency will happen but ceded that crypto advocates shouldn’t hold their breath when it comes to waiting for the approval of cryptocurrency Exchange Traded Funds (ETF).

Speaking at a Washington D.C. cryptocurrency conference, Commissioner Hester Peirce said that the cryptocurrency community shouldn’t “live or die” on the expectation of ETF approvals, but that she was promoting a more open-minded attitude towards digital assets among her fellow commissioners.

“Don’t hold your breath. I do caution people to not live or die on when a crypto or bitcoin ETF gets approved. You all know that I am working on trying to convince my colleagues to have a bit more of an open mind when it comes to [crypto]. I am not as charming as some other people.”

Cointelegraph reported in August that the SEC has rejected a total of nine Bitcoin ETF applications to date. In each dismissal the commission cited a lack of market scale and inadequate resistance to price manipulation.

Exchange traded funds are seen by many as a liquidity boon that will drive adoption

ETF’s are tradable securities that track underlying assets. For example, a fund that held one Bitcoin could divide it into one thousand “Bitcoin shares” that investors could trade more conveniently with one another than having to purchase actual Bitcoin from an exchange. If there is too much demand for the fund’s Bitcoin shares, the fund can acquire more Bitcoin and then issue more shares in the fund. It is believed by many that ETFs will reduce investor barriers to cryptocurrency market participation and lead to a massive injection of cryptocurrency liquidity.

Author: Timothy Goggin

Timothy Goggin is an economic analyst with an interest in the application of moral philosophy and decentralized systems. He studied economics at the Business School at Victoria University of Wellington, New Zealand. His area of research is the consequential and moral dimensions of implementing digital currencies and the resulting synergies for consumers in the trading environment.

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