The regulatory space surrounding the nascent crypto industry is as tumultuous as ever, as governmental figures attempt to figure out how to address this nascent asset class.
SEC Delays And Denies ETFs, Abra’s CEO Explains Why
As reported by LiveCoinWatch previously, the U.S. Securities And Exchange Commission (SEC) has taken on crypto-backed ETFs with a risk-averse stance, recently delaying a Bitcoin ETF proposal from VanEck & SolidX Partners. Explaining the reasoning behind this verdict, the SEC cited concerns of fraud and market manipulation, adding that crypto markets lack “significant size.”
The heavy-handed regulatory body has since doubled-down on its crypto stance, denying (and then reviewing) nine individual ETF applications from Direxion, GraniteShares, and ProShares.
However, some don’t think that it is cut and dried. Billy Barhydt, CEO of crypto startup Abra, recently appeared on CNBC “Squawk Box Europe” to discuss the matter. Barhydt stated: “I think the issue with the SEC, quite frankly, is that the people who are doing the applications don’t fit the mold of who the SEC is used to approving.”
Backing this claim, the crypto entrepreneur went on to reference his time at Goldman Sachs, claiming that the outward appearance of many crypto execs (like himself) may make the SEC most hesitant to accept an ETF proposal.
Some proponents of the cryptocurrency movement claim that the arrival of institutional investment, whether it be via an ETF or other financial vehicles, will drive the next growth and development cycle of this industry. So the fact that the SEC has yet to give the regulatory green light to such a vehicle has irked some investors, to say the least.
“An ETF Is Going To Happen In The Next Year”
But while the SEC may be hesitant to accept crypto assets with open arms, the Abra executive noted that all hope is not lost. The CEO of the popular startup concluded that an ETF application from a firm that “looks, feels and smells” like a traditional financial institution may sway the SEC to give some regulatory leeway.
Regardless, Barhydt closed off his segment revealing that he would “bet” on an ETF jumping through the required regulatory hoops within the next year. Elaborating on this sentiment, he added, “It’s going to happen in the next year, I would actually make a bet on it… there is too much demand for it.”
All eyes are on the SEC’s upcoming September 30th deadline, which will see the regulatory body decide on whether the already delayed VanEck & SolidX Bitcoin ETF will get the green light that all cryptocurrency proponents have been waiting for.