CSO of CoinShares Believes a Bitcoin ETF is not Going to be Approved by the SEC
It seems that a Bitcoin ETF might not be approved by the U.S. Securities and Exchange Commission (SEC) as soon as February 2019. This is what Meltem Demirors, the CSO of CoinShares believes.
During an interview with CNBC Crypto Trader, Demirors talked about the possibilities of the SEC approving the first ever crypto exchange-traded fund (ETF) in the market. Anthony Pompliano, the founder of Morgan Creek Digital, was also present during the interview.
Pompliano, compared to Demirors, said that she has no clue about this issue. Additionally, he said that it would be interesting to see if the market moves down or sideways if a Bitcoin ETF is approved by the SEC.
Demirors affirmed that the ETF will not happen anytime soon. Apparently, the decision to delay a Bitcoin ETF could be related to the current political climate in the United States. Apparently, there are no current upsides in approving a Bitcoin ETF.
About a Bitcoin ETF approval, she commented:
“I think people forget that the SEC, the CFTC these people are appointed, these are political positions. And so in this current sort of stalemate where you have Democratic House, the Republican Senate you see some clashing, there are very different views on financial and innovation and what should happen but I think right now there is no upside to approving an ETF.”
For example, there could be some issues regarding market stability and oversight. Demirors said that the SEC does not want to go in front of the Congress and explain why US investors lost money to Bitcoin.
During 2018, several Bitcoin ETFs were proposed by companies in the crypto space. Nevertheless, they were not approved by the SEC. Indeed, all of them were rejected with the exception of the proposal made by VanEck and SolidX. On February 27, the SEC will have to take a final decision on whether it approves or not the proposal made by the aforementioned companies.