Former SEC Chairman Highlights Conditions for Bitcoin ETF Approval
Former Securities and Exchange Commission (SEC) Chairman Jay Clayton has said that a spot Bitcoin (BTC) exchange-traded fund (ETF) is likely to be approved if it can be shown that the spot market for Bitcoin offers the same “efficiency” as the futures market.
“If they are [applicants] True, with the spot market having similar efficiency to the futures market, it would be hard to resist approving a Bitcoin ETF,” Clayton said in an interview with CNBC on Monday.
He added in the interview that he was “very skeptical” about trading the Bitcoin market when he was SEC chair, but also admitted that it will be difficult for the SEC to argue that a spot-based ETF cannot be approved now that products already exist. based on futures.
Clayton also explained that the fact that “institutions that know the markets better than anyone” want to put their name on a spot Bitcoin ETF likely means that the spot Bitcoin market has evolved and matured.
“I find it quite remarkable,” he said.
BlackRock Brings New Optimism About Spot Bitcoin ETF
The possibility of a US spot-based Bitcoin ETF being approved is something that is once again receiving a lot of attention after the world’s largest asset manager, BlackRock, applied to list one in June.
The BlackRock app was followed by similar apps from other companies, including asset management giants like WisdomTree and Invesco.
The SEC has previously rejected all attempts to list a spot Bitcoin ETF, arguing that spot Bitcoin markets are unregulated and can be manipulated.
Instead, the regulator has told the industry to only offer ETFs backed by Bitcoin futures contracts that are traded on the CME, a regulated futures exchange in the US.
However, BlackRock’s near-perfect record when it comes to getting its ETF applications approved has the market excited, with many now contemplating the regulator changing its stance on the issue.
Of BlackRock’s 576 ETF applications over its history, only one has so far been rejected by the SEC, Bloomberg has reported.