The SEC did what the SEC does, they rejected another Bitcoin ETF application last week
This is just another on a long list of bitcoin ETF rejections within the past several years.
Each time for seemingly different reasons, though the SEC states they are mostly for the same reasons.
The overriding theme seems to be about fears with market manipulation as well as protecting investors.
Though, every time those specific issues are addressed, the SEC seems to move the goalpost.
This latest rejection is especially disappointing since the applicant literally did everything possible to appease the SEC's concerns.
Yet it was still rejected.
This leads people to wonder if a Bitcoin ETF will ever actually be approved...
I am starting to wonder that myself.
Initially, I had thought that once the markets matured we would get an approval.
They have, and we haven't gotten one.
I had also thought perhaps we would get an approval for one attached to the futures markets since those are all fully regulated...
Well have had several such proposals, and they have all been shot down as well.
I am not sure exactly what the SEC is looking for at this point before it will approve a bitcoin ETF, but it does seem that it won't find it any time soon.
Plus we are likely going to lose our biggest supporter within the SEC as well...
There are those out there that claim a bitcoin ETF isn't really needed, or that it might be a bad thing for crypto...
I can see their points, but on the whole, I think the positives would far outweigh the negatives.
I think the amount of investment capital a bitcoin ETF would open the crypto world to is unmatched with just about any other recent development within crypto.
There are literally thousands of very wealthy funds that are not able to invest in products not regulated by the SEC.
The are just not allowed.
Getting an SEC approved bitcoin ETF would literally bring in billions upon billions of dollars into the ecosystem.
Once they start investing through a derivative they likely also would start investing in the spot infrastructure as well.
They would just need a regulated way to invest.
Currently those options do not exist outside of futures/options markets.
It's been a sad state of affairs with both the SEC and IRS being so unaccommodating towards bitcoin and crypto.
The technology is going to be pushed to other more accommodating jurisdictions as well as the jobs and GDP that is eventually generated from it.
Hopefully I am wrong, but this latest rejection has me thinking we won't be seeing a bitcoin ETF for at least a few more years...
If ever.
Stay informed my friends.
-Doc