TradFi in pole position. Ever since it became known that major players in international finance, such as BlackRock or Fidelity, have applied to the SEC to propose a ETF Bitcoin to their clientsthe entire ecosystem is feverishly awaiting the regulator’s response. Between thehope of a rising price and the fear of the arrival of the TradFi in the crypto game, these ETFs have not finished dividing crypto enthusiasts. Bitcoin. But nothing is set in stone in this matter, and the U.S. Securities and Exchange Commission could just as well refuse to reject all requests, as well as to accept some. A panel of specialists recently expressed their views on the subject, including reasons to believebut also many reservations about a positive outcome. Let’s give them their say!
At least the SEC didn’t say no
Let’s start by looking at the glass half-full and highlighting the positive signs coming from Washington and Gary Gensler. First of all, our two specialists welcome the SEC’s request for additional information on certain cases, such as BlackRock:
« Some people take the notion of Bitcoin ETFs spot [au comptant] too much to heart. However, it is common practice for the SEC to return queries and ask for clarification. »
Sean Tuffy, financial regulation expert
« I see this as very encouraging news, because the SEC didn’t just deny [les demandes d’ETF]. It basically sent the applications back and said to work on them. So there’s a chance they’ll be approved. »
Vivian Fang, professor of finance at Indiana University
For Fang, the fact that the SEC is requesting further information is clearly a big step towards acceptance. Indeed, in the past, applications have been rejected outright. But for Vivian Fang difficulty could arise from the very nature of the companies involved in the applications, particularly the crypto platforms.
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Crypto exchanges’ bad reputation at the heart of rejections?
To say that exchanges are not in the odor of sanctity in the corridors of the Securities and Exchange Commission is an understatement. Coinbase, Binance or Gemini are all in procedure with the regulator for suspicions sales of unauthorized financial securities in the United States. We are still waiting for the federal authority to take an official position on the nature of cryptos. Added to this is the fact that the SEC boss is not happy about the sector’s mix of genres:
« In some of our exchanges, the exchange, brokerage and clearing functions are separated. Separating these essential functions helps mitigate the conflicts that can arise by combining these services. »
However, in crypto, the same entities perform all these functions. That’s why our experts say that even if we designate Coinbase as a partner for a Bitcoin ETFThis probably won’t work either, since the Brian Armstrong is not registered as a national stock exchange.
And this lack of conformity of the crypto environment could be fatal to some Bitcoin ETF applications. Guess who’s going to get the short end of the stick? The historical players of traditional finance, of course! Vivian Fang imagines « a BlackRock and Nasdaq combination that would be an unbeatable golden team »..
The revenge of the TradFi is in the works, and it could well beat the crypto platforms to the punch. which have been fighting for recognition for years. So nothing is certain in the land of ETFs, and the outcome is far from written in advance. Last but not least, a word from Sean Tuffy: « At the end of the day, I think as long as Gary Gensler is in charge, we’re not going to get a bitcoin ETF through. I’m so skeptical of the outcome ». Decidedly, the SEC boss is always at the center of attention, even when he’s doing nothing.
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