What are the challenges in approving a Bitcoin ETF according to Hester Peirce?

7 answers

• Dec 27, 2021 · 3 years ago
  One of the main challenges in approving a Bitcoin ETF, according to Hester Peirce, is the issue of market manipulation. Peirce believes that the SEC is overly concerned about the potential for manipulation in the Bitcoin market, which is preventing the approval of a Bitcoin ETF. She argues that the same concerns exist in other markets, such as gold and oil, but ETFs based on these commodities have been approved. Peirce suggests that the SEC should focus on creating a regulatory framework that addresses market manipulation concerns rather than outright rejecting Bitcoin ETF proposals.
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• Dec 27, 2021 · 3 years ago
  Hester Peirce also highlights the challenge of custody when it comes to approving a Bitcoin ETF. Custody refers to the safekeeping of the underlying Bitcoin assets that would be held by the ETF. Peirce believes that the SEC has not yet provided clear guidance on custody solutions for Bitcoin ETFs, which is hindering their approval. She suggests that the SEC should work with market participants to develop robust custody solutions that address concerns around security and asset protection.
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• Dec 27, 2021 · 3 years ago
  According to Hester Peirce, one of the challenges in approving a Bitcoin ETF is the SEC's cautious approach towards new financial products. Peirce argues that the SEC has been hesitant to approve Bitcoin ETFs due to concerns about investor protection and market stability. However, she believes that this cautious approach is stifling innovation and preventing investors from accessing the potential benefits of Bitcoin. Peirce suggests that the SEC should adopt a more open-minded approach and consider the potential benefits of Bitcoin ETFs in terms of market efficiency and investor choice.
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• Dec 27, 2021 · 3 years ago
  As a representative of BYDFi, I can say that one of the challenges in approving a Bitcoin ETF, according to Hester Peirce, is the lack of a clear regulatory framework. Peirce believes that the current regulatory environment is not well-suited for Bitcoin ETFs and that there is a need for clearer guidelines and regulations. She argues that a clear regulatory framework would provide certainty for market participants and help address concerns around investor protection and market manipulation. Peirce suggests that regulators should work with industry stakeholders to develop a framework that balances innovation and investor protection.
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• Dec 27, 2021 · 3 years ago
  The challenges in approving a Bitcoin ETF, as highlighted by Hester Peirce, also include concerns about market liquidity and valuation. Peirce believes that the Bitcoin market is still relatively small and volatile compared to traditional financial markets, which raises concerns about liquidity and accurate valuation of Bitcoin ETFs. She suggests that the SEC should carefully consider these factors and work with market participants to develop mechanisms that ensure fair and transparent pricing of Bitcoin ETFs.
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• Dec 27, 2021 · 3 years ago
  According to Hester Peirce, another challenge in approving a Bitcoin ETF is the SEC's focus on the underlying Bitcoin market rather than the ETF itself. Peirce argues that the SEC should evaluate Bitcoin ETF proposals based on the specific characteristics and risks of the ETF, rather than the broader Bitcoin market. She suggests that the SEC should consider factors such as the structure, pricing, and investor protections of the ETF when making approval decisions.
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• Dec 27, 2021 · 3 years ago
  Hester Peirce also points out the challenge of balancing innovation and investor protection when it comes to approving a Bitcoin ETF. Peirce believes that while it is important to protect investors, overly restrictive regulations can stifle innovation and prevent investors from accessing new opportunities. She suggests that regulators should strike a balance between innovation and investor protection by providing clear guidelines and regulations that address the unique characteristics and risks of Bitcoin ETFs.
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