Skeptic’s lens: The elephant in the room for approving a Bitcoin ETF

Quick Take

  • The SEC’s approval of an ETF launch is contingent on three main requirements: derivatives with sufficient volume, access to regulated third-party custodians and measures against manipulation
  • The SEC’s main concern seems to be the manipulation of bitcoin’s price on unregulated exchanges
  • The majority of price discovery happens on exchanges that have virtually no regulatory oversight — BitMEX, Bitfinex and Binance
  • This is why chances are slim that a Bitcoin ETF will be approved anytime soon

A Bitcoin ETF has long been the Holy Grail of the crypto world — but don’t hold your breath on it.

Since early 2013, when the Winklevoss twins filed their first ETF application, which was, notably, also the first application to be rejected by the SEC, it’s been a central point of discussion in the market.