Some fund managers and crypto insiders are accusing the SEC of mistreating the crypto market. These individuals say that other asset classes are also subject to market manipulation and volatility.
According to some fund managers, the United States Securities and Exchange Commission (SEC) is showing double standards when it comes to the cryptocurrency market. Businessinsider published a report on July 7, where it noted that fund managers and cryptocurrency insiders had cast doubt on the SEC’s handling of crypto exchange-traded funds (ETFs).
Several applications for cryptocurrency ETFs have been filed in the past 12 months, most notably the VanEck bitcoin ETF, which has been repeatedly delayed. These funds managers and insiders state that the concerns of market volatility and manipulation also apply to other asset classes, and the undue scrutiny of the crypto market is unfair.
Will Rhind, CEO of GraniteShares, said that those concerns are a “bit of red herring,” and he highlights penny stock ETFs and oil ETFs as examples of market manipulation. Penny stocks are notorious for this, while some believe OPEC exerts influence over oil.
These analysts also state that there are risks associated with delaying the approval of an ETF. The U.S.’s delay on this matter has crypto investors scratching their heads, wondering when the country’s authorities will wake up to see the benefits.
After all, many regions already have a crypto ETF, including Canada and Europe. These have proven popular and a good entryway for many on-the-fence investors.
Waiting on bitcoin ETF approval
There are several crypto ETFs currently sitting on the SEC’s desk, and it’s anyone’s guess as to when the first ETF will arrive. But there are some signs pointing to a decision by the end of the year, or at least more clarity.
The VanEck ETF has been delayed multiple times, with the SEC saying that it needed more time for review. The deadline has now been set to July, so in a few week’s time, there should be more clarity on the SEC’s stance on ETFs. VanEck has also submitted a filing for an ETH-centered ETF.
SEC Chairman Gary Gensler has been cagey in his statements about cryptocurrencies, reiterating that investor protection is paramount in all decisions. He is knowledgeable about blockchain and crypto, and acknowledges the utility, but has also said that the market needs a “cop on the beat.”
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