Ex-SEC Chairman Anticipates 'Inevitable' Approval of Bitcoin ETF Amid Improved Market Dynamics
Summary:
Jay Clayton, former chairman of the U.S. Securities and Exchange Commission (SEC), predicts impending approval for a spot Bitcoin ETF in America, considering improved market dynamics over the last five years. Despite earlier rejections due to potential fraud and market manipulation concerns, he acknowledges the regulatory body's comfort with Bitcoin ETF disclosures from major firms and appreciates blockchain advancements. Several potential Bitcoin ETF issuers recently submitted revised filings, suggesting that the process might be accelerated. However, subsequent filing adjustments are likely to follow any additional SEC comments, which do not necessarily mean approval delays.
Former United States Securities and Exchange Commission (SEC) Chairman, Jay Clayton, has voiced his conviction that the approval of a Bitcoin (BTC) exchange-traded fund (ETF) is forthcoming. His comments were made during a discussion on CNBC on January 8, where he stated his belief that a U.S. spot Bitcoin ETF, previously rejected by the SEC, was undeniably on the horizon. He pointed out that over the last decade, all proposals for a Bitcoin ETF had been rejected due to worries about potential fraudulent activities and market manipulation.
Yet according to Clayton, the situation has altered significantly over the past five years, with the market dynamics for Bitcoin becoming more favorable. He noted that practices such as wash sales and laddering, which posed significant risks, were prevalent five years back, but the scenario has changed since then.
In his comments, Clayton also praised the regulator's stance, citing it as advancement, and remarked the comfort level achieved by the agency with Bitcoin ETF disclosures from companies such as BlackRock and Fidelity. He further stated that the appropriate infrastructure to securely maintain and store Bitcoin, in a manner acceptable to conventional financial market participants, hadn't existed until now.
Specific to crypto markets, Clayton admirably noted the evolution of blockchain technology, and its capability to tokenize and trade tangible assets. He asserted that this development was a significant stride in finance and not just restricted to the cryptocurrency sector.
Several potential Bitcoin ETF issuers submitted tweaked S-1 and S-3 filings to the SEC on January 8, revealing their intended product fees pending approval. Bloomberg ETF analyst James Seyffart interpreted this wave of altered filings as an indication of the regulator hastening the process. Seyffart, along with colleague Eric Balchunas, projected a 90% probability of a Bitcoin ETF approval by January 10. However, Seyffart also said that subsequent amendments to S-1 and S-3 filings could follow additional comments from the SEC, while dismissing the probability of any delays in ETF approvals.
Nevertheless, it is crucial to keep in mind that despite the ongoing amendments and commentary, they don't necessarily suggest delays in the approval of ETFs. Apart from cryptocurrency markets, in unrelated news, terrorism and the Israel-Gaza conflict have been leveraged as a means to annihilate cryptocurrencies.
Published At
1/9/2024 5:16:05 AM
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