Last year, several Bitcoin ETF proposals experienced rejection by the authorities, Winklevoss’s Gemini included. In 20198 however, the situation might change, as SEC representatives are showing interest in crypto technology.
However, they still stand their ground regarding KYC/AML policies. They are demanding better market manipulation and fraud rules from applicants. Several companies, including Gemini, Cboe, and Bitwise are in the game again. We might see Bitcoin ETF approval in this year as the market matures.
Recent Winklevoss Rejection
Since the rejection of the Winklevoss Bitcoin ETF proposal, the crypto community started to wonder whether the acceptance is indeed possible. However, the last result shows that within the US Securities and Exchange Commission (SEC) ranks few do support crypto instruments. SEC’s Commissioner Robert J. Jackson Jr. is one of them, voting for the acceptance of Bitcoin ETF out of four representatives. Jackson clearly stated that the BTC instrument would become a reality in the future.
“Eventually, do I think someone will satisfy the standards that we’ve laid out there? I hope so, yes, and I think so,” Jackson said.
Indeed, the possibility might be high if companies involved provide sufficient proofs regarding user safety. There are several other crypto organizations already into making their own Bitcoin ETF proposals. VanEck/SolidX solidified their offer once more, as Cboe refilled the application a few days later. At the same time, Bitwise also wants to have another shot, pushing once more for the ETF approval. Both companies put hopes that SEC is slowly warming up to the idea.
Previous Bitcoin ETF Efforts and Market Maturing
So far, all proposals were rejected due to the lack of fraud and manipulation policies. Since 2018, about ten projects did not pass the scrutinization of authorities, including ProShares, GraniteShares, and Winklevoss Bitcoin ETF proposals. SEC, on the other hand, provided a clear message for all applicants at the time. Requirements regarding a national securities exchange are not met. Therefore, fraudulent and manipulative acts and practices could easily occur.
Additionally, the governing body refuted claims that it does not believe in the technology itself. Instead, commissioners view Bitcoin ETF proposals to be lacking necessary KYC/AML policies. Thus, with 2019 already underway, new projects might wish to make another push. With market slowly maturing, ETF introduction might push for another bull run. Gemini thinks that they can make it happen.
“We are committed as ever to making an ETF a reality! The U.S. Securities Exchange Commission (SEC) could regard Gemini’s SOC-2 report as a factor in favor of its possible approval of Winklevoss’ petition for a Bitcoin ETF.”