SEC Commissioner Hester Peirce Relays Bullish Bitcoin ETF Notion of Possible Impending Approval
The U.S. Securities and Exchange Commission (SEC) might soon take the decision to approve the first-ever Bitcoin exchange-traded fund (ETF). According to the SEC commissioner Hester Peirce, the approval of a Bitcoin ETF is ‘definitely possible‘ She said that during a podcast on November 24.
During 2018, several Bitcoin ETFs presented by different companies have been rejected by the SEC. The screening process made by the regulator did not allow any proposal to succeed.
However, the commissioner mentioned that she sees a significant intellectual capital that is being invested by institutional investors and exchanges in order to work on a Bitcoin ETF. It is worth mentioning that Peirce’s comments do not represent the point of view or stance taken by the SEC in terms of crypto ETFs.
Peirce represents also one-fifth of the SEC’s regulatory body. That means that she has an important decision power to the regulatory agency. She has also criticized the way in which the SEC handled the application made by the Winklevoss twins and that was rejected back in July 2018.
She said about this:
“I think that one of the reasons is that in the past, with other applications for commodities – you might think of metals – [the SEC] also looked at the underlying markets. I would argue that this also was not the right approach at looking at those. Of course, that was well before my time there.”
She went on saying that she thinks that there are some worries around these new technologies, this is why the regulatory agency might have disapproved and rejected the proposal.
Clearly, she shows that the SEC is very careful about new innovative products and technologies, which is clearly reflected in the decisions that the company takes. The commissioner suggests that the SEC should find the proper way to figure out a way of being less cautious and let innovation grow in the market.
An ETF would be very positive for the market. Investors are waiting for one of them to be approved by the SEC at the beginning of the next year. Although there is no information on whether it will be approved or not, the market is getting prepared for it.