Crypto Price Manipulation and Market Volatility: SEC’s Biggest Reasons for no Bitcoin ETF Approval
No Bitcoin ETF Because Of BTC And Crypto Volatility?
The last 24 hours have been hard on Bitcoin. The well-known cryptocurrency has seen a significant decline in value and with that, many are starting to conclude that the SEC will not approve an ETF anytime soon. It is likely that the SEC considers it too volatile and therefore, it is a danger for investors.
The SEC’s mission, as it appears on its website, is:
To protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
As more and more first-time investors turn to the markets to help secure their futures, pay for homes, and send children to college, our investor protection mission is more compelling than ever.
As our nation’s securities exchanges mature into global for-profit competitors, there is even greater need for sound market regulation.
And the common interest of all Americans in a growing economy that produces jobs, improves our standard of living, and protects the value of our savings means that all the SEC’s actions must be taken with an eye toward promoting the capital formation that is necessary to sustain economic growth.
It seems that policing against issuance of an ETF due to bitcoin’s volatility falls into the SEC’s purview. Bitcoin’s value decreased by over 12 percent in the last 24 hours. As a result, many surmise that there is a slim chance that the SEC will approve an ETF as an investment option.
The question that now arises is whether crypto actually needs an ETF. In reality, even without a bitcoin ETF, the crypto markets will thrive. And for those who are looking forward to an ETF, it may be best to temper their expectations, given the circumstances. The SEC may not been to keen on approving one, especially due to the markets.