Abra CEO Shares Why Bitcoin ETF Approval From SEC to Happen Due to Demand, But Not in 2018
SEC To Approve A Bitcoin ETF Within A Year Says Abra CEO
SEC has recently rejected a fund offered by the Winklevoss twins, deferred a conclusion on VanEck and Solid X's proposed ETF and slapped down several other proposals. However, this doesn’t stop crypto bulls to be hopeful.
Bill Barhydt, chief executive of bitcoin payment startup Abra, said that's because, so far, the applicants haven't fit the financial archetype that the U.S. Securities and Exchange Commission (SEC) is looking for. Barhydt said:
“I think the issue with the SEC, quite frankly, is that the people who are doing the applications don't fit the mold of who the SEC is used to approving.”
There is some hope that institutions are warming to the bitcoin world. Barhydt said it would take an applicant who “looks, feels and smells” the way the SEC wants them to in order for an ETF application to win approval. He suggested that an application from a trusted financial institution would likely win favor with the commission, more so than a start-up or lesser-known firm.
Advocates of cryptocurrencies maintain that institutional interest in the space is a requisite step toward transforming it into a mainstream industry trusted by both big banks and consumers. But a huge downturn in prices over the last year has lowered optimism significantly over whether that institutional involvement will come any time soon, as volatile moves in prices are likely to put off large financial firms.
As to when the SEC might finally allow a bitcoin ETF, Barhydt said he would “bet” on one garnering regulatory backing within a year. “It's going to happen in the next year, I would actually make a bet on it,” he said. “There is too much demand for it.”