Experts Explain Why Bitcoin ETFs Will Soon Be Approved
The SEC has been rejecting all applications based on a number of reasons. A prominent figure in the ETF field now believes that ETFs will only be legalized after solid regulations are in place.
Reggie Brown Outlines When Bitcoin ETFs Will Be Legalized
Bitcoin Exchange Traded Funds are set to be approved anytime from now. This is according to Reggie Brown who has been dubbed as the father of ETFs. Brown’s observation was reported by Business Insider on Thursday. He is the MD of Cantor Fitzgerald an ETF trading platform.
The firm started operations back in 1945 with institutional equity as the main target. It also dealt with fixed income sales. At the moment, the firm is believed to have more than 5000 institutional clients drawn from the banking and real estate sectors.
During a recent speech at Georgetown University in DC, Brown said that bitcoin ETF approval depends on regulations. He stated that the approval will only happen in the event we have reliable laws in the crypto sector
SEC’S Dilemma In Approving Bitcoin ETFs
He acknowledged that the SEC is having a tough go of it because they cannot approve something without sufficient data because the market has not attained the level to offer the necessary guidelines.
On the other hand, Larry Fink from BlackRock echoed Brownie’s sentiments. According to Fink, the approval of ETFs means that they will have to be supported by the government. He added that the state needs to give a green light in an environment where we have the assurance that the funds raised are not being used for illegal activities.
Securities Exchanges Commission Rejects Nine ETF Application
This year has been characterized by a massive rejection of ETF applications by the SEC. Bill Barhydt from Abra said that the SEC rejected the applications since the crypto industry doesn't fit the usual paradigm. He specified that the SEC is rejecting applications because the applicant doesn't meet the mold of firms that are supposed to be approved.
Two months ago, the SEC temporarily turned down nine ETF applications from three major firms. The companies included ProShares, GraniteShares and Direxion. Earlier on the SEC had turned down applications by Gemini which is operated by the Winklevoss brothers. According to the controller, details presented by the brothers did not back up their conclusion.