Will SEC Approve The Two Bitcoin Exchange Traded Fund (ETF) Proposals?

Two of the cryptocurrency startups Cboe BZX Exchange and NYSE Arca have filed Bitcoin Exchange Traded Fund (ETF) proposals to US Securities Exchange Commission. The Cboe’s VanEck/SolidX proposal was published on Federal Register yesterday. Officially the 45-day verification period has begun as the SEC has to make an initial decision regarding the application.

On the other hand the NYSE Arca’s Bitwise Asset Management proposal was also registered on February 15. The director of digital asset strategy at VanEck, Gabor Gurbacks, said Coindesk that he believes a bitcoin ETF will serve the public interest if approved.

He further added that the company is regularly working with regulators as well as various other market participants. They aim to bring simplicity, transparency and professional market standards to digital assets. He also elaborated

I … hope that our investment in regulatory and market education, hard work and commitment will be honored when the time comes.

Matt Hougan, Bitwise Global head of research, believes that the crypto ecosystem is “evolving very rapidly” which may result in a product launch. Noting as an example he further said,

A year ago there was maybe one qualified crypto custodian … and now there are half-a-dozen, and that number will go up from here.

Eventually, the Bitcoin ETF approval all depends on how the companies describe their proposals. Elaborating which he further added that,

The SEC has been extraordinarily clear in the Dalia Blass letter and in the Winklevoss rejection letter in what they will require before you can list a product. It’s up to folks in the industry … to meet those standards. All you can ask for a regulator is to lay out clear bars you have to clear before they will approve something.

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