Abra CEO Explains Why SEC Continues to Deny ETF Applications
As CNBC reports, the recent rejection of ETFs by the US based regulator known as the SEC is derived from the notion that the cryptocurrency industry at large doesn’t match the applicant framework. Abra’s Chief Executive Officer, Bill Barhydt, discussed during a CNBC interview on Tuesday, stating that the SEC continues to reject applications for ETFs those who apply do not match the archetype of who these regulators usually approve.
SEC Approvals Are Biased Towards Archetype Applicants
He therefore deduced that approval such applications is entirely associated with the applicant, and therefore must fit the profile of what the SEC is looking for. In Barhydt’s opinion, financial organizations with reputable and trustworthy names have a far better chance at approval than less known businesses and startups. The CEO strongly predicts an SEC approval for a Bitcoin ETF within the upcoming year, explaining that as the demand increases, so will the pressure to approve from the regulatory standpoint.
Although he makes valid points, recent BTC ETFs have been disapproved and heavily publicized. This July, the Winklevoss brothers attempted to appeal a rejected application to the SEC with no success. On the seventh of August, yet another request for the trading of BTC from the VanEck investment firm ultimately postponed until the end of the month. Financial service provider, SolidX, also experienced the same response upon their request.
BTC ETFs Will Need To Wait
As stated by Dan Morehead, Chief Executive Officer at Pantera Capital, the approval for Bitcoin ETF is expected to take some time as mainstream implementation and acceptance of the industry still remains quite new. He also stated that among recent fiat assets approved by the regulator was in fact copper, a commodity that exists naturally on our plant for tens of thousands of years. A point worth putting crypto approval into perspective.
In accordance with recent updates from the reliable BTC pricing index associated with Cointelegraph, BTC currently trades at $7,377 bringing its value up by 1% today.