There have been many discussions concerning when America would approve its first Bitcoin ETF after Canada approved the Purpose-manged ETF early this year. The country’s ETF is the first Bitcoin Exchange Traded Fund in North America and the world’s firsts. Many firms have shown interest in setting up Bitcoin ETFs but have failed to meet the strict requirements put up by the nation’s regulator.
Despite the stringent regulations, Skybridge’s Anthony Scaramucci believes America would have its own Bitcoin ETF here due to the newly elected president, Joe Biden’s preferred candidate, to head the US Securities and Exchange Commission, Gary Gensler. The space believes that the crypto-friendly regulator would help the digital asset Industry enjoy some benefits that it had previously been deprived of.
Canada’s Bitcoin ETF approval has not influenced the US
When Canada approved its first Bitcoin ETF, the space saw it as an opportunity for America to get its ETF approved after years of not granting interested firms licenses due to the strict regulations. Scaramucci is a co-founder of the Skybridge Capital Hedge fund, and this shows that he understands the world of finance and investments.
The entrepreneur opined that he hopes with Gensler’s introduction to the regulatory body, and because of his crypto exposure, the country could get an ETF before the year ends. Exchange-traded funds are becoming very popular as investors Wang exposure to digital assets without holding it. The platform allows investors to bet on Bitcoin’s next price move without directly holding the assets.
The Bitcoin ETF is similar to the gold ETF, in which in both no one has to hold the asset. The digital asset space believes that when the government approves the Bitcoin ETF, it will make high-net-worth buyers exposed to the worth of digital assets as it becomes very easy to join the crypto space with the ETF. SEC continues to disapprove of firms who try to bring in Bitcoin ETF based on many reasons.
The regulator believes that the Bitcoin market is still very young and needs to mature before an ETF is available for it within the region. The watchdog also opined that the ETF could be easily manipulated due to the nature of cryptocurrencies.
Gary Gensler might change SEC’s stance
While America holds this discouraging belief, Canada has already approved two Bitcoin ETFs within the same year. Canada seems to be a more crypto-friendly nation to investors than America is, according to some experts. The specialists believe that America is not allowing the crypto space to grow by allowing the opportunity of it getting its first ETF.
People believed that Canada would have influenced the US’s opinion about approving the digital asset ETF, but that might not be the case as SEC remains unchanged. SEC, which is the crypto industry’s prominent regulator, has a very complicated relationship with the industry.
The relationship might be affecting the watchdog’s approval of some essential aspects of the sector. The regulatory body has had numerous legal battles with crypto-based firms and continues to have based on allegedly unclear reasons. One of the industry’s prominent firms, Ripple, is still in disagreement with the body as it opines that XRPs are not securities.
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