Long Beach (CoinChapter): The United States SEC announced that it has received VanEck’s application for a proposed Bitcoin ETF. Should it be approved, it sets the stage for the first bitcoin ETF to be launched on an American exchange.
The SEC has rejected all prior Bitcoin ETF applications. They have cited potential market manipulation among a number of other concerns as reasonings. VanEck themselves have even proposed numerous applications previously, but ultimately withdrew it.
In the time since however, Ontario regulators have approved three different Bitcoin ETFs. Regulatory bodies in Australia are also exploring proposals by several companies. The hope is that these would serve as a precedent for the US SEC to approve its first.
The SEC is now under new leadership with Gary Gensler as its new Chairman. Gensler has been a crypto advocate in the past, having made comments in support of blockchain technology. He believes the integration of digital assets and blockchain can have a positive effect on the economy.
However Gensler has also called for laws to protect investors from the inherent volatility of the crypto market. Hacks and scams remain a major concern for those opposed to crypto in general.
Canada has moved past those concerns and a big reason why was the availability of institutional-grade infrastructure. Ether Capital CEO Brian Mosoff believes that helped convince Canadian regulators the market was ready for that type of product. The success of things such as the Grayscale Bitcoin Trust only solidified that belief.
SEC Commissioner Believes What happened in Canada Can Happen In The U.S. With Bitcoin ETF
SEC Commissioner Hester Pierce pointed to what is happening in Canada as proof of what could happen in the U.S. “I feel that trend reinforces my position, I gave it several years ago. We are ready for a Bitcoin Exchange Product,” she said. “I would like to see an Exchange Product move forward. Facts and circumstances matter, but I think people are looking for ways to access Bitcoin via our regulated market.”