The Chairman of the Securities and Exchange Commission (SEC), Jay Clayton, has some misgivings about approving the much anticipated bitcoin ETFs.
Market manipulation, custody and fraud are top concerns for the SEC. Traditional investors expect a level of risk that is ‘free from the risk of manipulation’ Clayton said. He’d also like to see exchanges have oversight or surveillance to ensure illegal and abusive manipulation does not occur.
Also cited as an unresolved issue holding back ETF products was that of custody. While more viable options are more frequently becoming available, they still need to be ‘improved and hardened’.
Once these improvements to the cryptocurrency ecosystem are made, the asset class will be very close to becoming available to the traditional financial markets.