The Chairman of the U. S. Securities and Exchange Commission (SEC), Jay Clayton, has recently talked about the Bitcoin exchange-traded fund (ETF), which is one of the main interests that crypto traders have. According to the chairman, the market is making some progress, but there is still work left to be done before the ETF can finally be approved.
He was recently interviewed by CNBC and claimed that there are still concerns, despite visible progress. According to him, there is one central question: how to trust an asset which has its price based on unregulated exchanges.
Clayton affirms that most exchanges are not regulated, so they can engage in manipulation easily. Because of this, people need to be comfortable with the answers to this kind of question before they can really determine how to deal with a possible Bitcoin ETF. These questions, Clayton believes, are far from trivial.
His answers indicate the position that the SEC will take in the upcoming decision about the ETF, which is set to happen in a few weeks from now. Unfortunately, it seems unlikely that these proposals will pass.
One of them was submitted by VanEck and SolidX together with CBOE. The other Bitcoin ETF proposal was created by Bitwise Asset Management with NYSE Arca. Both of them made an effort to convince the SEC to approve them, but it does not seem that their arguments were compelling enough to fully convince Clayton.
The final deadline for these proposals to be accepted or rejected is October 13 for Bitwise and October 18 for VanEck and SolidX. Only then we’ll have the official answer, but the answers may indicate that the Bitcoin ETF will not be launched in 2019.