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There is Still Scope for Betterment in Bitcoin ETFs, says Jay Clayton

Jay Clayton, the reputed Chairman of United States Securities and Exchange Commission (SEC) in a recent interview with CNBC shared his views on the recent actions taken by the regulatory board on Bitcoin exchange-traded funds (ETFs).

While in conversation with CNBC’s Bob Pisani during the interaction, Clayton stated that the regulatory authority has been successful in taking crucial steps concerning the issues pertaining Bitcoin ETF, the spearhead still feels that there is still “work left to be done” in the field.

He supported his views by saying that the questions put up by SEC with regard to Bitcoin ETFs were not insignificant. He added that:

An even harder question given that they trade on largely unregulated exchanges is how can we be sure that those prices aren’t subject to significant manipulation? Now progress is being made, but people needed to answer those hard questions for us to be comfortable that this was the appropriate type of product.

Last year in November, the Chairman stated that problems concerning price manipulation and custody handling had been the prime factors for the air of suspicion hovering over the ETFs.

Clayton’s remarks have brought a sudden storm in the digital currency space as in the near future SEC is expected to give its decision on the selection or rejection of ETF set up proposals.

Bitwise Asset Management filed one of such proposals with NYSE Arca and also published an array of reports in the recent time to prove its point to SEC that the market is capable enough to come up with ETFs. A similar proposal was submitted by VanEck/SolidX with Cboe BZX.

SEC has to give the impending decisions on Bitwise Asset Management and VanEck/SolidX by October 13 and 18, 2019 respectively.

VanEck, in the meantime, has started offering the shares of its VanEck SolidX Bitcoin Trust to reliable buyers in alignment with the exemption under the SEC’s rules. The platform is offering the shares from the same trust through which it opines to build an ETF.

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Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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