With Fidelity investments officially announcing its bid for a Bitcoin ETF, the figure of firms that have applied for a license moved up one place. Taking a look at the figures, seven companies have officially filed to take up a Bitcoin ETF. With the figures now almost at a touching distance above, analysts have waded over whether the SEC should start approving Bitcoin ETFs or not.
With the first one coming as far back as 2013 when Winklevoss twins led company applied for an ETF, it is safe to say that the United States Securities and Exchange Commission has neither looked into the idea nor are still taking an onlook approach as to the sector.
The United States SEC still adamant about not granting firms approval
The SEC’s behavior that has spanned across the years has caused fears amongst several entities planning to submit their application. A typical example is the Van Eck entity that pulled its application bid over fears that the SEC would throw it in the trash just like the others before. While much has been said about the regulator’s stand on the issue, much light has been cast on the reasons why the regulator has refused to flag off at least one Bitcoin ETF.
According to them, there has a huge pool of concerns that even those creating the ETFs would not tackle. Growing among the list is market manipulation in the crypto market. The firm has also mentioned that it has fears that transparency would be rid in the market. Another reason why it has failed to approve one is the fact that the SEC is just getting to know Bitcoin and other digital assets and has not worked with them before. Lastly, the SEC talked about liquidity in the Bitcoin market.
CF Benchmarks CEO says firms are ready for the challenge
Giving his review of the issue on the ground, the CEO of CF Benchmarks, a firm that provides crypto indices for clients, Sui Chung, has shed light on certain issues. He mentioned that it was understandable why the firm refused to approve the Winklevoss Capital Bitcoin ETF because they were starting. He positioned that even though the firm had enough financial backing, it was not yet mature enough to carry out the activities.
He mentioned that this had changed now, and companies have done their groundwork. He pointed out that even though these new firms have shown that they can meet the challenges that the Bitcoin ETF would bring, the SEC is still turning a deaf ear to them. Despite the United States regulator still adamant, it is safe to say that Bitcoin ETFs are doing remarkably well across the globe. The three launched in Canada are doing well and have over $83 million locked there. Even though the new one launched in Latin America is still pretty early, it is safe to say that it has seen a successful debut in the crypto sector.