The United States securities regulator may likely approve Bitcoin (BTC) exchange-traded fund (ETF), a commissioner was quoted as saying. The political journal Congressional Quarterly reported the comment in a forthcoming interview which got leaked on Twitter on Feb. 5.
The Securities and Exchange Commission (SEC)’s only Democratic commissioner, Robert J. Jackson Jr. reportedly stated that the practice will eventually change despite its string of ETF proposal rejections in the previous year.
“Eventually, do I think someone will satisfy the standards we’ve laid out there? I hope so, yes, and I think so,” he stated to the press, per the reportedly leaked interview piece.
In 2018, several ETF applications were considered by the SEC, however, all of them were eventually received “no” verdicts or suspensions on the final result.
VanEck got involved in a very deep discussion with the SEC, highlighting different concerns expressed over its product. The U.S. government shutdown in the previous month has led to the temporary withdrawal of the application, prior to making a resubmission a week later.
Meanwhile, while addressing previous proposals, Jackson pointed out an effort for an ETF in March 2017 by Tyler and Cameron Winklevoss as an indication of the way perceptions were changing along with the market.
When the twins’ ETF proposal was rejected in March that year by the SEC, considerable volatility was witnessed by the Bitcoin markets, an event which has notably decreased since then.
“There you had a situation where the risk for manipulation and for people getting hurt was enormous. The liquidity issues in the market were very serious,” he added.
Hester M. Peirce, a U.S. SEC commissioner has earlier disagreed with the second rejection of the Winklevoss Bitcoin ETF in July 2018 by the regulator, stressing that the decision taken by the SEC was basically wrong.
According to some other sources like cryptocurrency advocate Andreas Antonopoulos, it is a case of when, not if, for acceptance of ETF in the U.S., however, some are not still sure about its importance in the industry.