Former SEC Official Skeptical of Bitcoin ETF Approval
John Reed Stark, a former official of the SEC, expresses doubt over the approval of a Bitcoin exchange-traded fund (ETF). He believes the chances are slim due to the lack of regulations and oversight in the cryptocurrency market. Stark points to a report that suggests bots on the X platform manipulated crypto prices, highlighting the lack of transparency. He argues that without proper regulatory oversight, there are no fundamentals or customer protections in the crypto market. Stark previously mentioned the possibility of the SEC changing its stance on Bitcoin ETFs after the US Election Day in 2024.
Pause in Bitcoin ETF Progress as Ethereum Futures Nears Approval
Several investment firms, including BlackRock and ARK Invest, are awaiting the SEC’s decision on Bitcoin ETF applications. While BlackRock is seen as having the highest chance of approval, the SEC has not provided a definitive response. Cathie Wood of ARK Invest believes multiple ETF applications will be approved simultaneously based on marketing and communication. Meanwhile, the approval for Ethereum-linked ETFs may come sooner, as sources suggest the SEC is close to greenlighting Ethereum Futures ETFs. The regulator is not expected to block these products and may approve multiple firms for launch by October.
Hot Take
The skepticism surrounding the approval of a Bitcoin ETF reflects the concerns over the lack of regulations and transparency in the cryptocurrency market. While there is hope for Ethereum-linked ETFs, the overall sentiment suggests that the SEC is cautious about approving crypto-related financial products. The crypto industry needs to address these concerns and work towards establishing proper regulations and oversight to gain the trust and approval of regulatory authorities.
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