Reggie Browne, who is a senior managing director and head of ETF trading at Cantor Fitzgerald and titled as ‘godfather of ETFs,’ talked about the certification of Bitcoin (BTC) Exchange-Traded Funds (ETF).
During a Conference regarding Georgetown University’s Financial Markets Quality in Washington D.C, Browne expressed that Bitcoin ETF will be certified “no time soon.” he elaborated that BTC ETFs will be approved only after the development of an effective regulatory framework in the industry.
Citing the current state of BTC ETFs, he said, ”It’s very difficult for the [Securities and Exchange Commission (SEC)] to wrap their heads around a positive approval because there’s no data yet … the markets just aren’t here.”
Notably, Cantor Fitzgerald is a financial services company, established in 1945. It specializes in institutional equity, fixed income sales, and trading. The company serves around 5,000 institutional clients, including firms related to investment banking, prime brokerage, and commercial real estate.
Additionally, leading investment management firm BlackRock’s CEO Larry Fink shared similar insights. He stated, “I wouldn’t say never, when it’s legitimate, yes.” Also, Fink further added that ETFs ‘ultimately’ have to be supported by a government and that a government will not greenlight such financial instruments unless it knew the funds were not being used for illicit activities.
Reacting on the subject, Bill Barhydt, the CEO of crypto payment startup Abra indicated that the cause behind the SEC has insofar rejected crypto ETFs is the crypto industry does not meet the applicant archetype. Specifically, the SEC has rejected crypto ETF applications as “people who are doing the applications don’t fit the mold of who the SEC is used to approving.”
Reportedly, Nine proposals to trade Bitcoin ETFs were declined by the SEC back in August, including The Winklevoss twins.