en
Back to the list

SEC Chair Clayton: Would-Be Bitcoin ETFs Have ‘Work Left to Be Done’

Legal

www.coindesk.com 10 September 2019 08:10, UTC
  
Reading time: ~2 m

The market has taken steps to address the U.S. Securities and Exchange Commission’s (SEC) concerns about approving a bitcoin exchange-traded fund (ETF), but there is still “work left to be done,” said the agency’s head.

Speaking on CNBC Monday, SEC Chairman Jay Clayton said “progress is being made” in the crypto space to allow a bitcoin ETF to launch, though concerns linger.

In November the chairman said concerns around price manipulation were a key holdup for the financial product’s green light, alongside questions such as how custody operates.

On Monday, Clayton reiterated these concerns, saying:

“An even harder question given that they trade on largely unregulated exchanges is how can we be sure that those prices aren’t subject to significant manipulation? … People needed to answer these hard questions for us to be comfortable that this was the appropriate kind of product.”

The SEC’s questions are “not trivial,” Clayton added.

Critical juncture

Clayton’s remarks come just weeks before the SEC is expected to approve or reject a pair of bitcoin ETF proposals.

Bitwise Asset Management, which filed one of the proposals with NYSE Arca, has published a number of reports over the past year in an effort to convince the SEC that the market is mature enough to support such a product.

VanEck/SolidX submitted the other proposal with Cboe BZX. This proposal was filed in 2018 and was seen as a strong contender to become the first bitcoin ETF approved by the SEC. However, it was withdrawn during the prolonged government shutdown of early 2019 and re-filed.

The SEC has postponed decisions on both ETF proposals but faces a final deadline of Oct. 13 for Bitwise and Oct. 18 for VanEck/SolidX.

While waiting for an ETF approval, VanEck has begun offering shares of its VanEck SolidX Bitcoin Trust to qualified institutional buyers using an exemption under the SEC’s rules.

Though the product, announced last week, is not a retail offering (and therefore not an ETF), the shares come from the same trust on which VanEck hopes to build an ETF.

Nikhilesh De contributed reporting.

Jay Clayton image via CoinDesk archives


   Source
Back to the list

Similar news
Suggest news


Legal
Impending Work on Bitcoin (BTC) ETF Claims SEC Chairman Jay Clayton
www.cryptonewsz.com11 September 2019 09:54, UTC
Legal
SEC Chairman Clayton shows concern about Bitcoin ETF
coinnounce.com11 September 2019 07:54, UTC
Legal
‘Progress is being made’ toward bitcoin ETF, SEC chair says
www.marketwatch.com11 September 2019 07:41, UTC
Legal
Jay Clayton: Progress Is Being Made on a Bitcoin ETF
www.livebitcoinnews.com10 September 2019 18:00, UTC
Legal
Bitcoin Stranded as SEC Chief Indicates Behindhand ETF
www.newsbtc.com10 September 2019 10:00, UTC