Will Bitcoin ETF ever get Clayton’s approval?
Securities Exchange Commission (SEC) Chairman Jay Clayton still seems wary of approving a Bitcoin exchange-traded fund (ETF) despite Nasdaq’s plans to introduce Bitcoin futures early next year.
At the Consensus Invest Conference in Manhattan, Clayton outlined a number of changes that need to be made in cryptocurrency markets in order to receive his approval for the first ever bitcoin ETF.
The first step is increasing surveillance of markets. Current cryptocurrency markets lack advanced monitoring systems used by major exchanges such as Nasdaq and the New York Stock Exchange (NYSE). These systems aid in the prevention of market manipulation. In April, however, Nasdaq expressed interest in partnering with the cryptocurrency exchange Gemini. The partnership would allow Gemini access to Nasdaq’s surveillance technology, thereby providing a more secure exchange.
Clayton’s second concern focuses on the security of markets. Given that over $1.1 billion in cryptocurrencies have been subject to theft in 2018 alone, Clayton’s worries over market security are warranted. Despite the fact that Goldman Sachs, Gemini, and Coinbase all plan on offering more secure crypto custody, they still lack the necessary qualities to ensure investor protection.
Although Clayton’s approval for a Bitcoin ETF seems less possible than ever, he has outlined the necessary steps required to win his consent. It now comes down to major cryptocurrency players to make the changes required to ensure a more secure exchange.