A great expectation take place in the financial market with the possibility of the approval of the first crypto ETF. Created in 1929 after the financial crisis, the SEC have the responsibility to regulate the American stock market. Now, according to SEC Commissioner Robert J. Jackson, soon or later the approval shall come. The statement was made during an interview with Bitcoinst (https://bitcoinist.com/bitcoin-etf-inevitable-sec-commissioner/) on February 7.
However, this level of confiance came for the cryptoassets after a journey through a long road. The Winklevoss brothers, known for their involvement in Facebook’s creation, have already tried to get the agency’s approval. In 2017 SEC rejected a proposal submitted to create of a bitcoin-backed asset. The rejection came after a three-year journey trying to get approval from the agency and to list the asset on the BZX Bats Exchange. Following a request for review submitted by Bats, a new reject came to the ETF in 2018.
Another attempt that ended in rejection was the submission of two proposals sent by Bitwise Asset Management. The arguments presented by the SEC were the same as those reported in the application filed by the Winklevoss brothers. The agency claims that there are no mechanisms that guarantee the safety of the asset against manipulation and fraud. Despite successive rejections, SEC emphasized in all cases that the non-compliance refers to the proposal submitted, not with the crypto-coins market.
The quest to SEC approval goes on
The answer to the request submitted by CBOE continues awaited with optimism by the financial market. However, more applications have recently submitted to agency approval. Bitwise has sent a new application in early 2019 for the approval of a bitcoin-based product. Besides that, the Winklevoss brothers intend to continue seeking approval to issuance of a product in the American financial market.
The approval of the first ETF represents an important change that, accourding with The Robert J. Jackson’s speech, is about to happen. However, Switzerland has already stepped forward (https://panoramacrypto.com/swiss-will-have-the-first-derivative-asset-backed-on-crypto/) and has carried out the approval of the first crypto-based asset for its stock exchange . Therefore, after the first approval, many others shall follow the those steps to the institutional market.