The reason the U.S. Security and Exchange Commission has insofar denied crypto exchange traded funds is because the crypto industry does not fit the applicant archetype, according to the CEO of crypto payment startup Abra, CNBC reported September 4.
Speaking in an interview with CNBC's "The Coin Rush," Bill Barhydt suggested that the SEC has rejected crypto ETF applications because "People who are doing the applications don't fit mold of who the SEC is used to approving."
Barhydt said that in order to receive approval for an ETF, there should be an applicant who "Looks, feels and smells" the way the SEC expects them to.
He further noted that a trusted financial organization has better chances to get approval than a startup or a relatively unknown company.
Barhydt's statements follow some widely publicized rejections of Bitcoin ETF applications.
In July, the SEC denied an appeal for the application of a Bitcoin exchange-traded fund by brothers Tyler and Cameron Winklevoss.
On August 7, the regulator postponed its decision on the listing and trading of a BTC ETF from investment firm VanEck and financial services company SolidX until September 30.
Last month, Pantera Capital CEO Dan Morehead suggested that a BTC ETF would take "Quite a long time," saying that crypto adoption was still in its early stages.
Morehead noted that the most recent asset that gained approval from the SEC for ETF certification was copper, a metal that "Has been on earth for 10,000 years."
Bitcoin is trading at $7,377 at press time, up more than 1 percent on the day, according to Cointelegraph's Bitcoin Price Index.
Abra CEO: SEC Denies Bitcoin ETFs Because Applicants Do Not Fit Industry Archetype
Published on Sep 5, 2018
by Cointele | Published on Coinage
Coinage
Mentioned in this article
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.