Commissioner, Robert J. Jackson Jr. at the U.S. Securities and Exchange Commission (SEC) believes a bitcoin exchange-traded fund (ETF) will be approved in the near future. The Commissioner expressed optimism about a Bitcoin ETF on the horizon during an interview with Congressional Quarterly published by Roll Call on Wednesday, stating: “Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so.”

There has been a great deal of bitcoin ETF proposals filed for SEC approval, but so far none have been approved as the SEC has rejected at least 10 proposals so far. In July, the SEC rejected Cameron and Tyler Winklevoss’ proposal for the second time to list a bitcoin ETF on the Bats BZX Exchange- while also turning down seven filings from ProShares, Direxion, and GraniteShares, shortly after in August. Discussing the Winklevoss’ proposal with Roll Call, Jackson said it was “not a difficult case,” but the risk of manipulation and harm to investors was “enormous,” while the market has a “very serious” liquidity problem. He continued: “I’m happy to say market participants have begun to come in with ideas. Whether or not we’re going to find one that really protects investors I don’t know, but I do know that that [Winklevoss] case wasn’t especially close.”

Another SEC commissioner, Hester Peirce has also been positive toward the possibility of a bitcoin ETF. In July, Hester Peirce said that the Winklevoss’ proposed rule change “satisfies the statutory standard and that we should permit BZX to list and trade this bitcoin-based exchange-traded product (‘ETP’).” “From my perspective, we need to be mindful of what our role is, and it’s not to be the ones who decide which innovations and which technologies get through and which ones don’t.” Today, Peirce tweeted that she looks forward to working with Jackson “to open the doors to innovation.” The SEC’s rejections have clearly not stopped the demand for institutions filing for a Bitcoin ETF. As the CBOE recently re-submitted their Bitcoin ETF proposal backed by VanEck and SolidX and Bitwise Asset Management announced its plan to launch a bitcoin ETF.



The World of Crypto on The SEC’s Radar

In January, the SEC put out a list of its priorities for 2019, which included Bitcoin and cryptocurrencies. The SEC’s Office of Compliance Inspections and Examinations (OCIE) would head the effort in cryptocurrencies stating that It will keep a lookout for such things as the ‘offer and sale, trading, and management of digital assets’. An excerpt from the OCIE’s statement on the matter stated: OCIE will take steps to identify market participants offering, selling, trading, and managing these products or considering or actively seeking to offer these products and then assess the extent of their activities. For firms actively engaged in the digital asset market- OCIE will conduct examinations focused on- among other things, portfolio management of digital assets, trading, safety of client funds and assets, pricing of client portfolios, compliance, and internal controls.

Conclusion

With the recent popularity of Bitcoin and other related cryptocurrencies it is only a matter of time before institutions and big players announce their plans and for investing in digital currencies. Institutional platforms such as BAKKT and Fidelity are coming in the distant future with Bitcoin ETF’s also on the horizon. These proposed platforms will offer major investment conglomerates secure and stable methods to manage their cryptocurrency trading and investment needs. Comments like these from SEC commissioner, Robert J. Jackson Jr. prove that a Bitcoin ETF will eventually become a reality and that it is only a matter of time before the floodgates are open for Bitcoin.

