Wall Street Journal Analyzes SEC’s Bitcoin ETF Denial Concerns, Reporter Deems Risks Valid
Crypto investors last week had their hearts stabbed by a metaphorical sword through an announcement made by the SEC. The Securities and Exchange Commission made an announcement indicating that it was going to deny nine bitcoin-backed ETF proposals. The proposals were from GraniteShares, Direxion, and ProShares.
The commission released three individual documents in a bid to further explain its verdict on the decision it had arrived at. In the documents, the commissioners went on to explain that the mere fact that the cryptocurrency (bitcoin) lacked a substantial size, meant that it was still subject to widespread manipulation and fraud.
Although the United States regulatory body has since then pursued a review and stay order for the denial verdict, the concerns raised by the Securities and Exchange Commission still resonated with the reasoning of some cryptocurrency investors, including notable Wall Street Journal’s Paul Vigna.
According to Vigna, it was important for the SEC to establish the kind of manipulation that was allegedly taking place and the people behind the manipulation and fraud. If this was not done, then it would be almost impossible for any ETF to be able to enter the retail markets.
Bitcoin’s Destiny Wasn’t Pegged On ETF
Mellisa Lee, a host working with CNBC, recently brought up the idea of having a Bitcoin ETF. She noted that this would act as a catalyst for all the markets. She was, however, quick to point out that if this was to happen, then it would go against the very idea of having self-custody and as well as having a decentralized blockchain.
Lee went on to note that custody does not necessarily indicate that the private keys are in the right hands. Many people in the cryptocurrency industry have for a longtime been looking at the passage of an ETF as the next big catalyst for this market.
However, there are still a few people in this industry who look at the idea and make a conclusion that this is not right. The conclusion among many people in this group has been that unless you are the bitcoin owner, then you do not necessarily own that particular bitcoin.
Vigna is one of the many people who have gone on record to provide their backing for this particular statement. He also pointed out that the existing rift between bitcoin custody ETF vehicles and diehard decentralists will not be closed down anytime soon.
This is regardless of the different products or avenues that are still being developed for use with bitcoin. However, as many cryptocurrency experts like to point out, it is highly unlikely for the SEC to actually approve an ETF or any other similar medium without having in place a secure, experienced, and established custody solution.
While ending his segment, Paul Vigna, the Wall Street Journal reporter went on to provide some insight on the role that the Securities and Exchange Commission is playing in the cryptocurrency industry. He did this by stating that the regulatory body is currently doing all that it can in order to ensure that cryptocurrencies become mainstream.