More Spot ETFs Shot Down By The SEC
The SEC has again denied more Bitcoin spot ETF proposals. Valkyrie and Kryptoin were at the receiving end of the disappointment this time around. Well, the SEC disclosed its verdict in a document published three days ago. The regulator’s arguments mirrored those it gave previously in the cases of other denied spot Bitcoin products.
The regulator said that the two companies failed to meet the country’s exchange laws. In addition, it expressed discontent with the proposed measures to protect market participants. The regulator said it had to stop the ETFs with these in mind.
The SEC’s Body Language
ETFs are financial products that enable interested participants to access certain markets or commodities without owning them directly. For example, a Bitcoin-backed ETF will enable many interested institutional investors to get exposure to the crypto market without going through the hurdles of setting up a wallet, securing the keys, and finding sellers. Instead, the ETF tracks the token price, and it is as simple as buying a stock for them.
The SEC this year has since denied 4 Bitcoin spot ETFs counting these 2. First, it denied VanEck in November after an almost one-year wait. Then, wisdomTree followed suit at the beginning of December; the commission also took a while to decide.
The body led by Gary Gensler seems to have one argument for stopping all of these spot ETFs. They keep expressing concern for safe financial environments. Many were hoping for a different outcome considering such products were now up and running not so far away in Canada.
Bitcoin Futures ETFs, however, have not had to face the same brick wall. At least 3 Bitcoin ETFs have been approved this year; ProShare is the first; it amassed over a billion in value locked within the first few days. The record showed that there is a lot of interest in the market.
Futures ETFs are based on future crypto price predictions instead of the actual token. However, pundits have explained that this particular product burdens both the body that offers it and the investors with more cost. As a result, many have decried that it remains a less efficient alternative.
Innovative Exodus
The regulatory body still has two more spot ETF products to decide on. The submissions were made for the two products in October. However, in a statement from the commission, the regulators revealed that the body plans to hold off on its decision till February next year. So interested investors will wait to see if the narrative changes when the time comes.
A couple of days ago, Ripple Chief Brad Garlinghouse, in a thread where he revealed this was the company’s best year yet, called out the regulators on their attitude to crypto so far. Garlinghouse outlined many advancements in crypto that were happening outside the United States. The executive believed that the United States was being left behind and expressed that the harm to the United States hegemony might be great if the trend continues.
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