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Why is the SEC blocking the Spot Bitcoin ETF? Expert's response

Wed 24 May 2023 ▪ 3 min of reading ▪ by Luc Jose A.
Getting informed ▪ Crypto regulation

In recent years, the Securities and Exchange Commission (SEC) has fiercely opposed the creation of a Spot Bitcoin ETF. Some exchange-traded fund (ETF) experts believe that this trend is not going to change anytime soon.

A coin representing the bitcoin with the mention Spot ETF bitcoin

No chance of a Spot Bitcoin ETF emerging in the United States

The question of exchange-traded funds on Bitcoin is a sticking point that divides the SEC and the crypto industry. The regulator has been particularly unfavorable towards their creation. As a result, all attempts in this direction have simply been blocked by the SEC.

During the Bitcoin 2023 conference held last week, Jan van Eck was asked about the issue, specifically whether the regulators’ position could eventually change. His response was straightforward. “No chance!” he exclaimed.

If the CEO of the investment and asset management company VanEck’s response seems abrupt, it’s not without reason. So far, no company that has initiated such a procedure with the SEC has succeeded. 

The most recent one, Grayscale, has even taken legal action against the regulator. The company argued that the SEC’s refusal is deeply discriminatory because the market manipulation risk associated with Spot Bitcoin ETFs, as mentioned by the SEC, is inconsistent. This is because other sectors with the same level of risk have been successful.

For now, the court has yet to settle the debate. However, Jan van Eck believes that even if Grayscale wins the lawsuit against the SEC, the crypto industry is not out of the woods. “Even if the SEC loses a Grayscale litigation, they’ll just drag their feet, appeal. So I just don’t see that in the next year and a half,” stated the executive.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.