Timothy Massad, former chairman of the US Commodity Futures Trading Commission (CFTC) from 2014 to 2017, outlined why regulators should approve a Bitcoin Exchange Traded Fund (ETF).

Timothy Massad – Former Chairman of the CFTC

In an opinion piece posted on Bloomberg on Wednesday, Massad said the Securities and Exchange Commission (SEC) should approve a Bitcoin ETF in ways that could improve the transparency and integrity of the industry. In this way, investors can access the digital asset without having to buy it on exchanges or worry about self-custody.

Massad said the ideal way to get Bitcoin ETF approved would start with a stronger regulatory framework for the cryptocurrency. However, he acknowledged that “the likelihood that this will happen in the near future is not high”. In a February interview, Massad said that U.S. crypto regulations have too many holes.

In the absence of comprehensive regulations, Massad said the SEC could use the ETF listing process to improve the integrity of crypto exchanges.

“One eligibility requirement is that the ETF price is based on an index of exchanges that meet certain regulatory standards, similar to indices for stock and derivatives exchanges.”

U.S. securities regulators have been reluctant to approve a Bitcoin ETF due to concerns about liquidity, transparency, and price manipulation. Several ETFs have been filed with the SEC and are listed as pending. The SEC is currently reviewing a number of applications and has requested the public to comment on the prospectus filed by VanEck.

According to an expert on the subject, Todd Rosenbluth, Bitcoin ETF approval will be at least a year away. The head of mutual fund and ETF research at CFRA told CNBC in April that regulators are unlikely to give an ETF the green light in the near future.

In Canada, regulators have approved many Bitcoin ETFs, and early trends seem to suggest that these services are very successful. Bitcoin ETF proposals continue to attract investment despite the sharp correction in Bitcoin price since May.

Annie

According to Cointelegraph

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