It has been a long road to haul for the Bitcoin exchange-traded fund (ETF) and it looks as if we’re still far from gaining approval. After years of delays and several proposals that seemed as if they would get traction, only to end up being rejected, the Bitcoin ETF advocates continue their struggle.
A recent Bloomberg article talked about how hard the process has been. Bitcoin is acting like a roller coaster and even the most trustworthy companies that try to convince the U. S. Securities and Exchange Commission (SEC) to approve the asset are still failing.
According to James Seyffart, an intelligence analyst at Bloomberg, the SEC is too concerned about market manipulation to approve the ETF right now. Over 20 crypto companies have tried it and no one has succeeded because the SEC looks at the market and doesn’t trust what we have right now.
The crypto market also has several hacks and scandals happening every month, so combined with acute price swings, more traditional regulators are simply too afraid to approve something that can make people gain and lose money so swiftly.
It is undeniable that the market is improving and becoming more regulated, but the chairman of the SEC, Jay Clayton, is adamant about his concerns right now.
Instead of trying to get a killer proposal, the advocates of the Bitcoin ETF need to work on curb market manipulation instead. With such a high rate of manipulation, it is unlikely that we’ll see the ETF approved for now.