What are the main obstacles preventing the approval of a Bitcoin ETF?

3 answers

• Dec 17, 2021 · 3 years ago
  The main regulatory obstacle preventing the approval of a Bitcoin ETF is the concern over market manipulation and lack of investor protection. The Securities and Exchange Commission (SEC) has expressed concerns about the potential for price manipulation in the Bitcoin market, as well as the lack of robust surveillance and oversight. Additionally, the SEC has raised concerns about the custody of Bitcoin and the ability to prevent theft and fraud. These concerns have led to the rejection of several Bitcoin ETF proposals in the past.
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• Dec 17, 2021 · 3 years ago
  One of the main market obstacles preventing the approval of a Bitcoin ETF is the lack of a regulated and transparent Bitcoin market. The SEC has stated that in order for a Bitcoin ETF to be approved, the underlying market must be resistant to manipulation and have sufficient liquidity. Currently, the Bitcoin market is largely unregulated and decentralized, making it difficult for the SEC to determine whether it meets these criteria. Additionally, the lack of transparency in the Bitcoin market makes it difficult to monitor for market manipulation.
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• Dec 17, 2021 · 3 years ago
  As an expert in the cryptocurrency industry, I believe that one of the main obstacles preventing the approval of a Bitcoin ETF is the fear of competition from traditional financial institutions. The introduction of a Bitcoin ETF would allow retail investors to easily gain exposure to Bitcoin, potentially diverting funds away from traditional investment products. This could threaten the profits and market dominance of traditional financial institutions, leading to resistance and lobbying against the approval of a Bitcoin ETF.
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