American regulators reject applications for bitcoin-ETF because they are not sure of those who submit the documents. This is the opinion expressed by Bill Barhydt, the general director of Abra crypto startup. Barhydt made his statement, speaking on CNBC. He believes that the approval of the first bitcoin-ETF will occur within a year. According to the CEO of Abra, the main problem is “who” applies for the funds opening to the U.S. Securities and Exchange Commission (SEC), as these people do not fit the profile of those whose applications are approved by the SEC.
"I used to work for Goldman Sachs, but if you look at how I'm dressed you probably wouldn't know it. So I probably, unfortunately, couldn't go like I am here to a meeting at the SEC to say I'm applying for the ability to issue an ETF," he added.
Barhydt noted in an interview that the applicants, whose documents had already been rejected, did not meet the Commission's requirements regarding the financial profile and personal archetype. In his opinion, in order to receive an approval, an applicant to the SEC "looks, feels and smells" the way the watchdog wants them.
Abra’s CEO has also noted that a greater chance for issuing a license is not from small firms and startups, but from reputable financial institutions. He is confident that the first approval will be received next year, as there is a great demand on the market for the opening of bitcoin-ETF.
WHY IS IT IMPORTANT?
- The U.S. Securities and Exchange Commission has so far rejected all the applications for the opening of Bitcoin-ETF. On August 23, the SEC in total did not approve nine of them. In its response, it was said that companies failed to prove compliance with the requirements to prevent manipulation in the market. After a day it turned out that the regulator was going to reconsider its decision. In addition, on September 30, the Commission should consider the application for bitcoin-ETF from VanEck and SolidX. Initially, the meeting on this issue was set on August 10.
- Each decision regarding bitcoin-ETF is affecting the situation on the market. After the refusal of nine applications on August 23, the rates of the cryptocurrency market went off.