As Bitcoin's value started declining sharply in early 2018, crypto investors who jumped in near the market's peak found themselves in rough waters. To steer clear of these turbulent trends, many have pushed for mechanisms like exchange-traded funds, physically-backed futures, and similar offerings hoping these tools might stabilize prices and encourage widespread acceptance.
Yet, on a recent Wednesday, these hopefuls faced setbacks from U.S. authorities when the Securities and Exchange Commission instructed one entity to withdraw its proposed fund tied to digital currencies.
Reality Shares Forced to Withdraw Bitcoin ETF Application
As reported by Blockonomi Reality Shares, an asset management venture based out of California with a focus on digital currencies, recently pitched an unusual ETF proposal to the SEC, which governs U.S. financial regulations. The fund aimed to combine interests in CME and CBOE contracts with global monetary instruments including sovereign bonds in Bitcoin futures currencies like the Japanese Yen and Swiss Francs among others. British Pound Responding to questions about the fund's distinctive arrangement, Eric Ervin, CEO of Reality Shares, remarked:
“The SEC currently seems reluctant to endorse a comprehensive crypto ETF, but what's proposed here constrains exposure to just 15%.”
While several industry observers speculated that the SEC might be swayed by the fund’s limited focus on digital currencies, the reality was different. In what's remarked as the swiftest decision seen in this emerging sector, the governmental body requested Reality Shares to rescind their seemingly harmless proposal. Upon review,
a company attorney and spokesperson verified: Bitcoin ETF-related “I can confirm we pulled the application. The withdrawal was due to the continued stance of the staff deeming it unsuitable to register a 40 Act compliant fund with crypto exposure at this juncture.” CoinDesk The legal representative for Reality Shares further clarified that SEC officials were concerned about the filing being done under the Investment Company Act of 1940, which allows automatic approval after a fixed duration of 75 days.
Despite the SEC's latest directive causing jitters for casual investors, Bitcoin ETF advocates remain optimistic.
Hunter Horsley, CEO of Bitwise Asset Management, expressed his positive outlook on CNBC alongside Bob Pisani, suggesting that the concept of a cryptocurrency-backed ETF is nearing reality. He emphasized that the crypto sector is more robust than ever, with an ETF tracking these digital assets being an almost inevitable development. Addressing concerns around market manipulation Bitcoin and security, Horsley expressed faith in the sector's progress.
Hopefuls Remain Optimistic.
In alignment with Horsley, Ric Edelman, a celebrated financial expert from Philadelphia, reinforced the view during an appearance on CNBC's 'ETF Edge.' He opined that the entry of a cryptocurrency product onto U.S. exchanges is a probable future event rather than a mere possibility, highlighting that regulatory bodies involved with digital currencies are progressively adapting to this nascent landscape.
Robert J. Jackson, from a prominent American group, conveyed his inside perspective to Congressional Quarterly, indicating optimism for the eventual inception of a Bitcoin ETF, foreseeing that a compliant crypto entity could meet the SEC's standards.
Statements from noted SEC figures have bolstered confidence among investors globally. Despite previously voting for the Winklevoss Twins’ Bitcoin ETF, the official continues to advocate for coherent regulation within the sector.
Even an SEC commissioner has expressed Nevertheless, during a discourse at the Bipartisan Policy Center, she cautioned that regulatory complexities might delay the final approval of a Bitcoin ETF. However, she also hinted that when conditions are right, the formalization of this field will unfold.
Jackson’s coworker, Hester “Crypto Mom” Pierce I began exploring the cryptocurrency arena in 2013 as a writer. My work has been featured by major industry names such as LongHash, NewsBTC, and Decrypt. When I'm not penning articles, I contribute as part of HTC's EXODUS team, a known name in Taiwan's electronics sphere. I also hold a modest amount of Bitcoin. You can contact me at [email protected]
Qubetics Raises $15.2M in Presale - Why It's a Top Pick for Crypto Novices? Plus, Insights on Arweave's Data Storage and Astra's AI Defense
