After the long waiting, the United States Securities and Exchange Commission (SEC) finally approved the trading of Spot Bitcoin ETFs, as expected I believe this is a great news for investors, agency and cryptocurrency industry after their long waiting approval of ETFs.
source
Wednesday marks the end of the awaiting of spot ETF as SEC consider it after 10 years the first application for a spot Bitcoin ETF was filed in the United States, and the needed for it has become a top story for the past six years as cryptocurrency industry want to expand trading fund. However, SEC Commissioner Hester Pierce, known as Crypto Mom explain why there is much delay and denied in spot Bitcoin ETFs approval.
Pierce said "It was impossible to predict how soon spot Bitcoin ETPs would be approved, as the review process for these filings did not bear much semblance with accepting such comparable ETP. The goalposts kept changing as the Commission rejected one application after another with a ‘DENIED.’ and that made it a reason why many crypto industry think SEC chair Gary Gensler is so much strictly on cryptocurrency investment with his tight regulations. And it's obvious that Commission chair Gary is acting within the law but just lack prior actions.
His actions has driven many industries and retail investors to use less efficient channels for getting exposure with Bitcoin in securities markets, but instead of acknowledging his mistakes and misconduct towards investing on cryptocurrency when this was pointed out , the SEC provides a weak justification for why. Although Bitcoin can't be compare to other products because it drive all cryptocurrency market and if SEC have to use the standard of other commodity based ETPs maybe it will be a big problem on the market.
This is really a great news for investors and cryptocurrency industry as they went on Wednesday to change their mind and finally approve spot Bitcoin ETFs after a court called their attention in August that the agency must review an application and give a good reason why they need to be denied. In particular Grayscale, court called SEC bluff and ask why it was denying spot Bitcoin ETFs, the justice wrote, such action is "unlawful", so without more explanation crypto firm Grayscale should be converted. I think this late action is what we have been expecting for so long.
But for several month Gensler allured to the court and doing what pleased him by giving explanation that the file for application ETF are similar to the previous attempts and it has be the reason why they don't get approval, but this is obvious that SEC treatment of spot Bitcoin over the past decade is anti-crypto act and such treatment has harm SEC reputation far beyond cryptocurrency regulations. Their unclear statement has diminished trust from the public and with their millions of dollars and time spent blocking ETFs applications over the years has become waste of resources.
However, crypto market need regulations, but clear guidelines and regulation will be more required so that more investor and industries will embrace the use of Bitcoin and other cryptocurrency in financial system. Spot bitcoin ETFs approval will be a catalyst for the bull market.