Last night the US Securities and Exchange Commission (SEC) finally approved the first spot bitcoin ETFs. A total of 11 license requests from the fund were approved concurrently.
SEC Chairman Gary Genler agreed to accept an appeals court ruling in August 2013 that found the SEC erred in determining that the Grayscale Bitcoin Trust could not be converted into an exchange-traded fund. ETF), the judge explained that denial. “I don't like the law. And it is not neutral, and is not yet complete by comparison of principles and reasons.”
Mr. Carey said in a statement “From these circumstances and as it is fully discussed in the approval order. And ultimately, I must approve the listing and trading of these futures stocks and spot bitcoin ETFs.”
However, he noted the difference between a commodity-based metals ETF and a Bitcoin ETF. “Although we are neutral but I know that metal based assets or ETPs have both consumer and industrial applications. Bitcoin, on the other hand, is a speculative and volatile asset used for illegal activities. Genler said.
Pearce and Ueda expressed their views by questioning whether or not the SEC is neutral when the Republican commissioners support approval of ETFs. Commissioner Uyeda said, “Although the Commission approved the registration application in this case, fundamental analysis methods have good regulatory performance. Therefore, the reasoning in the consent order is flawed. It may reverberate in the memories and questions of investors and the public for years to come.
Commissioner Pearce said, “Instead of admitting wrongdoing, the SEC and provide reasonable explanations for the changes that have occurred. In the past, the Commission has allowed regulators' unbiased opinions to determine future risks or damages. Consideration of the underlying assets has not yet fully considered damages, but it was approved even though the Bitcoin market is still very young. Also regarding ambiguous money transfers. There are concerns. She added: “The only significant change since we turned down a similar request is that it's blaming the courts.
While in GranShore, Democrats disagree with the commissioner's endorsement, citing research from Forbes Digital Assets that Bitcoin prices can't be trusted.
Bitcoin ETF Competition
One of Commissioner Uyeda's criticisms is the last-minute approval process. He did not accept the reasons given to speed up the process, ignoring the 30-day notice requirement for changes in ETF license applications. “Perhaps the real motivation for speeding up approval is to avoid a first-mover advantage. The first Bitcoin ETF gets a larger share of investors' assets when it hits the market. In our view, brokerages can find good and relevant reasons by citing the results of potential anti-competitive practices.”
The 11 recognized ETFs are as follows:
Grayscale Bitcoin Trust
Fidelity Wise Origin Bitcoin Fund
(BlackRock) iShares Bitcoin Trust
Valkyrie Bitcoin Fund
ARK 21 Shares Bitcoin Fund
Invesco Galaxy Bitcoin ETF
VanEck Bitcoin Foundation
WisdomTree Bitcoin Fund
Franklin Bitcoin ETF
Bitwise Bitcoin ETF
Hashdex Bitcoin ETF
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