Regulators rejected a pair of proposals to offer physically backed Bitcoin exchange-traded funds, handing crypto enthusiasts a proverbial bag of coal ahead of the Christmas holiday.
Last Updated: 02 June 2021
Crypto ETFs in the US are piling up at the Securities and Exchange Commission (SEC) with multiple submissions awaiting approval. The reason the financial watchdog is showing hesitance towards launching ETFs has not been stated explicitly, but it could be concerned with how to protect investors, given the volatile nature of the crypto market, and the lack of surveillance on crypto exchanges.
Just last week, Gary Gensler, Chair of the SEC, talked about financial services in a House Committee, where he stated that the market is full of gaps in investor protection. He also said that no cryptocurrency exchange in the US had registered its official service offerings with the commission.