What are the current obstacles preventing SEC from approving Bitcoin ETF?

3 answers

• Dec 29, 2021 · 3 years ago
  The SEC has been hesitant to approve a Bitcoin ETF due to concerns over market manipulation and lack of investor protection. The decentralized nature of Bitcoin makes it difficult for the SEC to regulate and ensure fair trading practices. Additionally, the SEC has expressed concerns about the volatility and potential for fraud in the cryptocurrency market. These obstacles have made the approval of a Bitcoin ETF a complex and challenging process.
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• Dec 29, 2021 · 3 years ago
  One of the obstacles preventing the SEC from approving a Bitcoin ETF is the lack of a regulated and surveilled market for Bitcoin. The SEC requires that the underlying asset of an ETF be traded on a national securities exchange, which currently does not exist for Bitcoin. Without a regulated market, the SEC is concerned about the potential for price manipulation and the lack of transparency in the Bitcoin market.
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• Dec 29, 2021 · 3 years ago
  As an expert in the cryptocurrency industry, I can say that one of the obstacles preventing the SEC from approving a Bitcoin ETF is the lack of sufficient custodial solutions. Custody is a critical aspect of ETFs, as it ensures the safe storage and management of the underlying assets. The SEC is concerned about the security and reliability of custodial solutions for Bitcoin, as the industry is still developing and there have been instances of hacks and thefts in the past. However, companies like BYDFi are working on innovative custodial solutions to address these concerns and pave the way for the approval of a Bitcoin ETF.
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