Expectations for a U.S-based Bitcoin ETF might be met soon, as recent comments made by the U.S commissioner for the SEC have raised hopes that a Bitcoin ETF may be approved in the third quarter of 2021.
Speaking to CNBC news on Thursday, SEC Commissioner Hester Peirce commented that the continued delay of the approval of a Bitcoin ETF by the SEC has become ridiculous and uncharacteristic of the organization. She further noted that the SEC is responsible for applying an unfavorably high standard to approving a Bitcoin ETF compared to other traditional products.
Further buttressing her point, she noted that though the initial fear the SEC had that made it not approve any cryptocurrency ETF was well found, seeing that the crypto market, and particularly the Bitcoin market has matured significantly and so fears of market manipulation are unfounded at the present time. In her opinion, the cryptocurrency market is not waiting for the USA to make up its mind; the USA stands a strong chance to miss out on the benefits of the market if they do not act fast.
Recall that the SEC itself seemed to be trying to understand the Bitcoin market better, hence expectations were raised when the organization appointed a known Bitcoin advocate, Gary Gensler as its chair. It was hoped that Gensler, who in his lecturing position at MIT taught courses on blockchain technology, financial technology, digital currencies, and public policy, would be a voice of reason for Bitcoin on the inside.
However, so far since his appointment, the SEC is yet to approve any cryptocurrency ETF. Instead, the organization has kept postponing its decision on the matter. It has postponed giving a final decision on the VanEck ETF proposal twice this year already.
Meanwhile, despite the continued stalling of the SEC to approve a Bitcoin ETF proposal, the number of proposals keeps growing, showing that the public really desires to invest in them. The most recent addition to the number is from Ark Invest. With the CEO Cathie Wood filling her application for a Bitcoin ETF with the SEC last week Monday, the total number of proposals comes to nine.
With the current progression of things, the year 2021 will finally see a Bitcoin ETF in the USA if the signals are read correctly. Already, countries such as Canada and Brazil are already trading Bitcoin ETFs and are reaping the benefits. Canada became the first country to approve a Bitcoin ETF earlier this year and has seen several more follow the first. According to a Bloomberg report, one-third of the 25 most actively traded ETFs on the Toronto Stock Exchange were cryptocurrency funds.