SEC Denies Bitcoin ETFs Because Applicants Do Not Fit Industry Archetype, Says Abra CEO
The reason the U.S. Security and Exchange Commission (SEC) has insofar denied crypto trade exchanged funds (ETFs) is because crypto business does not fit the applicant archetype, as indicated by the CEO of crypto payment startup Abra, CNBC reported September 4.
Speaking in a meeting with CNBC’s “The Coin Rush,” Bill Barhydt recommended that the SEC has rejected crypto ETF applications since “people who are doing the applications don’t fit the mold of who the SEC is used to approving.”
Barhydt said that for them to get an endorsement for an ETF, there ought to be a candidate “looks, feels and smells” the manner in which the SEC expects. He additionally noticed that a trusted financial association has preferable opportunities to get endorsement over a startup or a generally unknown company.
Barhydt expected that the SEC will at long last approve a Bitcoin (BTC) ETF one year from now:
“It’s going to happen in the next year, I would actually make a bet on it. There is too much demand for it.”
Barhydt’s announcements take after some generally publicized rejections of Bitcoin ETF applications. In July, the SEC denied an interest for the utilization of a Bitcoin exchange-traded fund by siblings Tyler and Cameron Winklevoss. On August 7, the regulator put off its decision on the posting and trading of a BTC ETF from investment firm VanEck and financial service organization SolidX until September 30.
A month ago, Pantera Capital CEO Dan Morehead proposed that a BTC ETF would take “quite a long time,” saying that crypto adoption was still in its beginning periods. Also noting that the latest resource that gained endorsement from the SEC for ETF certification was copper, a metal that “has been on earth for 10,000 years.”
Bitcoin is trading at $7,377 at the moment, up more than 1 percent on the day, as per Cointelegraph’s Bitcoin Price Index.